Allianz X, the digital investments arm of global insurer and asset manager Allianz Group, has announced an investment in NEXT Insurance, a leading, technology-first small business insurer in the United States. Insurer Allstate is also investing, bringing the strategic round to a total of USD 265 million. The new round marks the start of a broader partnership between Allianz Group and NEXT, including a deepening of the reinsurance relationship with Allianz Re. It will enable NEXT to continue growing its book of business, retaining risks and accelerating the company’s path to profitability. It also makes Allianz a capital partner for NEXT in both risk and equity.
Allianz X’s decision to invest in NEXT underscores the remarkable growth and potential it has demonstrated, as well as the attractiveness of the B2B small business insurance market in the U.S., which remains ripe for disruption. Born out of a digital-first, data-driven approach to insurance modernization, NEXT addresses the specific needs of small business owners that were previously unmet. Its use of cutting-edge technology, such as proprietary machine learning algorithms that make it possible to get a quote in just a few clicks, has both simplified the buying process and provided more affordable, customized coverage.
Small businesses are fundamental to every economy. NEXT understands the needs of this group deeply, and it has developed cutting-edge technology to address their common pain points.
CEO of Allianz X
“Small businesses are fundamental to every economy,” said Nazim Cetin, CEO of Allianz X. “NEXT 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.”
With more than 33 million small businesses in the U.S., NEXT is committed to serving one of the largest segments of the U.S. economy. Its nearly half a million customers across the U.S. rely on NEXT for its easy-to-use online platform, time-saving resources, and coverage for essential small business needs, such as General Liability, Commercial Property, Workers’ Compensation, and more.
“We founded NEXT because we saw an opportunity to help millions of small and microbusinesses across the U.S. and made it our mission to help entrepreneurs thrive,” said Guy Goldstein, CEO and co-founder of NEXT Insurance. “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.”
Allianz X is known for its investments in mature digital growth companies operating in ecosystems relevant to insurance and asset management. It led the two largest U.S. insurtech rounds last year, Pie Insurance (USD 315 millionoalition (USD 250 million). The investment in and partnership with NEXT is a testament to Allianz X’s confidence in the company’s future and an addition to Allianz X’s U.S. investment platform of insurtechs providing property and casualty solutions to SMEs.