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.