Next Insurance, a US-based InsurTech firm, has partnered with insurance giants Allstate and Allianz which includes a $265m strategic investment from both Allstate and Allianz X, the venture arm of Allianz.
The investment will enable Next to enhance its product offerings and expand its reach to small business clients, according to the Coverager.
Under this new partnership, Next’s digital insurance products will become accessible to Allstate customers, and the companies will jointly develop commercial auto products tailored for the small business market.
Additionally, the deal reinforces Next’s reinsurance relationship with Allianz through a multi-year commitment with Allianz Re.
Founded with a mission to support small and micro-businesses in the United States, Next provides digital insurance solutions designed to simplify coverage for entrepreneurs.
Its platform offers a comprehensive range of products including general liability, professional liability, and commercial auto insurance, all aimed at providing cost-effective and accessible options for small business owners.
The new funding will be directed towards expanding Next’s portfolio of insurance products, scaling its platform capabilities, and enhancing its collaboration with Allstate to reach millions of underserved small businesses across the United States.
By combining Allstate’s established distribution network and brand recognition with Next’s digital expertise, the companies aim to deliver “affordable, simple, and connected protection” to a broad audience of small business owners.
This funding round brings Next’s total capital raised to $1.1bn, reflecting growing investor interest in the InsurTech space and the potential for digital solutions to disrupt traditional insurance offerings for small businesses.
Next CEO and co-founder Guy Goldstein said, “We founded Next because we saw an opportunity to help millions of small and micro-businesses across the U.S. and made it our mission to help entrepreneurs thrive. Building on our existing support, we are excited to welcome Allianz X and Allstate as investors, deepen our reinsurance relationship with Allianz Re, and foster a meaningful partnership with Allstate to offer millions of their customers our one-stop-shop small business insurance offering.”
Allstate Insurance Property-Liability president Mario Rizzo commented, “Combining Allstate’s operational expertise, broad distribution network and strong brand awareness with Next’s capabilities will help Next’s unique platform bring new, innovative products to existing Allstate customers and the millions of underserved small businesses that want affordable, simple and connected protection. Together, we will meet the full insurance needs of small businesses, delivered on the platform of the future.”
Dr. Nazim Cetin, CEO of Allianz X, added, “Small businesses are fundamental to every economy. Next Insurance understands the needs of this group deeply, and it has developed cutting-edge technology to address their common pain points. With Allianz’ deep expertise in this sector and Next’s technology, we can further our joint goal of giving customers the courage and security to take on the future with confidence.”
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