Digital Insurtech Company Next Insurance Raises $250 Million

By Amit Chowdhry ● September 28, 2020
  • Leading digital insurtech company Next Insurance announced that it has raised $250 million in Series D financing led by CapitalG

Leading digital insurtech company Next Insurance announced that it has raised $250 million in Series D financing led by CapitalG (Alphabet’s independent growth fund) with participation from FinTLV and existing investor Munich RE Group. CapitalG Partner Sumiran Das will join the Next Insurance Board of Directors.

Including this round of funding, Next Insurance has now raised $631 million to bring simple and affordable insurance products to the American economy’s most important growth engine: small businesses and the self-employed. And Next Insurance’s technology-first approach drives down costs by up to 30% compared to traditional policies. Other examples of Next Insurance company momentum in 2020 include:

— Gross Written Premiums (GWP) increased year-over-year by 133% and the company recently recorded $750,000 in GWP in a single day, a 75x increase in three years.

— Next Insurance is committed to being the one-stop-shop for small business insurance and a customer experience leader has helped it grow to more than 100,000 customers. And as of today, Next Insurance is available to 1,300 types of businesses in 50 states and provides six insurance offerings, including General Liability, Professional Liability, Commercial Auto and Workers’ Compensation coverage, all under one roof.

— Next Insurance has increased headcount by 50% in 2020 with plans to hire over 200 new employees over the next 12-18 months across their offices in Palo Alto, Austin and Israel.

Small business insurance has typically been served by large carriers that offer one-size-tries-to-fit-all products across large commercial, personal, and auto lines. But none of those products meet the specific needs of micro and small businesses as those generic policies eat up cash flow and do not address the unique requirements of an independent carpenter, architect, or small retail boutique. Next Insurance has built its digital product portfolio from the ground up using machine learning, data science, and modern customer support practices to deliver a more customized, affordable, and delightful insurance experience.

Over the past 60 days alone, Next Insurance has added Tools and Equipment and Hired and Non-Owned Auto (HNOA) coverage and expanded Workers’ Compensation coverage to more markets. And the company will continue to expand existing product offerings while introducing new products in 2021 to better serve the specific needs of small businesses in industries like accounting, construction, fitness, retail, and many more.

Through Next Insurance, insureds have access to USA-based licensed insurance advisors, tools and services such as 24/7 access to certificates of insurance from a mobile device or computer and in-house claims filings where a decision is typically made within 48 hours.

KEY QUOTES:

“Next Insurance is modernizing insurance for small business owners — making it fast and simple to get broad, customized coverage. We believe that there is an opportunity to use technology to transform the small business insurance experience in the U.S. and build a national insurance leader. Next Insurance has the right team and capabilities to capitalize on this vision and is well on its way to doing so. We are proud to partner with Guy Goldstein and the Next team to help them accelerate their vision.”

— Sumi Das, partner with CapitalG

“We aspire to help businesses thrive by delivering phenomenal insurance products and experience. Insurance is a market primed for a new approach – one that believes it is a social good and cares for its customers. We believe we have the right team, the right approach and the right products to enable us to lead the shift in this industry, and we are excited to have CapitalG joining the ride.”

— Guy Goldstein, co-founder and CEO of Next Insurance