Next Insurance, policies for microenterprises (and tons of investors are coming in)

The Californian insurtech startup has raised investments for 131 million dollars in two years. What do we like about the model? The complete focus on a single customer target, the small commercial and professional activities, completely forgotten by the Companies

Published on 25 Jul 2018

Donatella Cambosu

Redattore

In Italy it would be defined as the ”insurance for VAT”.
Next Insurance, in North America, is considering to make policy for microenterprises accessible, easy, transparent, satisfying, quick and low cost to all those small business and professional activities scattered in 50 States, until now quite forgotten by the current insurance system: barber, beauty specialist, personal trainer, photographer, bricklayer, babysitter, masseur, laundry service, housekeeper, DJ, event planner.
A community of professionals whom the Company offers both a general liability policy which covers any accidental injury or damage to persons or property in the exercise of any trade and a professional liability policy which covers against legal proceedings and claims for negligence and professional misconduct.
Insurance policies for professionals have long existed in Italy, although in particular they are linked to the self-employed (lawyers, accountants, doctors, etc.), as well as in the U.S.. So what else does Next Insurance offer?

According to one of the investors, “We are excited to join Next Insurance in creating the first insurance company dedicated to small businesses,” Elliot Geidt, CEO of Redpoint Ventures. “Next Insurance is basically reshaping the way insurance is provided to small businesses, offering an excellent, low-cost product experience. Combining underwriting accuracy, digital product focus and vision has disrupted the small business insurance system and we’ve joined them to continue enabling their incredible growth.”

First of all, then, the point is to have a customer experience and “tailor-made” products.
“The complexity of the small business insurance market is very significant leading to a situation where even the major players hold less than 10% of the market.” said Guy Goldstein, founder and CEO at TechCrunch. “This opens up enormous growth potential for us, as we aim to further specialise and become market leaders in every vertical of small businesses”.
Not only, there is also the trust element, typical of the traditional insurance, the company absolutely intends to gain, proposing (even in terms of communication) in a very empathetic way. In its website an example is given, where on this page stands out its Manifesto (which is addressed directly to potential customers).
When you start a business, you’re placing a huge bet on yourself. A bet on your ideas. On your passion. Your blood, your sweat and tears. We created Next Insurance to give your business the edge it deserves. Simple, affordable and transparent insurance plans tailored to your specific industry. You want the confidence of great coverage exactly where you need it. And none where you don’t.
Your business is on a very unique mission.
Finally, there’s an insurance partner that understands that.

Next Insurance recently announced to have raised $83 million from venture capital funds, bringing its total funding to $131 million. This financing will allow the company to continue its growth throughout the United States as a real insurance carrier: its new status as licensed carrier in Delaware, Oklahoma, Arizona, North Carolina, Texas, New Mexico, Maryland and Utah is already operating, and rapidly expanding into all 50 states. As a carrier, Next Insurance can now take out policies independently, with much more freedom in underwriting, pricing and setting up policies, providing entrepreneurs and small businesses with simple, affordable insurance tailored to their specific needs.
“This is a breakthrough in the development of our Company”, said Guy Goldstein, in a press release “Our rock-bottom growth over the last two years has shown that small businesses have been disregarded and underestimated by the insurance market. Gone are the pages of complicated and unreadable documents, of exclusions that make entrepreneurs more vulnerable, of endless meetings and phone calls with insurance agents who do not understand the complexities and needs of the different business classes. Small businesses are the cornerstone of the US economy and deserve affordable, accessible and trustworthy insurance policies to support and give them the strength they need to thrive. Our goal is to become the one-stop solution for all the insurance needs of small businesses, wherever they are”.

The company is also planning to develop additional insurance guidelines, on-demand policies, claims paid within 48 hours, and more sophisticated uses of AI and machine learning with the new funds to improve customer experience and simplify the purchasing process.

(in the photo the founders of Next Insurance Nissim Tapiro, Guy Goldstein and Alon Huri)

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Donatella Cambosu
Redattore

Scrive di tecnologie, startup e innovazione da oltre 15 anni. Dal 2015 collabora con il Gruppo Digital360, in particolare con le testate Startupbusiness, University2Business, EconomyUp. Collabora con InsuranceUp sin dal lancio del portale avvenuto nel 2015 e ha maturato un'ampia esperienza in ambito insurtech.

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