- NEXT will provide its products to Allstate customers, expanding its footprint to even more small businesses nationwide
- NEXT and Allstate will co-develop innovative and unique commercial auto products to target market of 33 million small businesses
- Deal with Allianz Re bolsters its reinsurance relationship with a multi-year commitment
- Partnership fuels a new $265 million equity raise from Allstate and Allianz X to accelerate the company’s path to profitability and continue expanding distribution
PALO ALTO, Calif., November 1, 2023 — NEXT Insurance, a leading technology-first small business insurer, today announced its strategic partnership with Allstate that will combine the companies’ expertise in small business insurance to develop and offer innovative and unique new products to a large underserved market, as well as a commitment to deepening its reinsurance relationship with Allianz. The partnerships come with a $265 million strategic investment from Allstate and Allianz X.
Born from a digital-first, data-driven approach to modernize insurance, NEXT’s foundation was built to address the specific needs of small business owners that had previously been unmet. Its use of cutting-edge technologies, like proprietary machine learning algorithms that make getting a quote just a few clicks away, has simplified the purchasing and servicing processes and provide easier, more affordable and tailored coverage. As the needs of small business owners shift towards a more digitally-native insurance experience, it’s clear that technology-led insurers have set a new standard.
“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.”
NEXT has committed to serving the more than 33 million small businesses in America, one of the largest — and most important — segments in the U.S. economy. Today over a half a million small businesses across the U.S. rely on NEXT for its easy-to-use online platform, time-saving resources, and essential coverage, including general liability, commercial property, workers’ compensation, and more.
“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,” said Mario Rizzo, President of Property-Liability at Allstate Insurance. “Together, we will meet the full insurance needs of small businesses, delivered on the platform of the future.”
“Small businesses are fundamental to every economy,” said Dr. Nazim Cetin, CEO of Allianz X. “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.”
Ardea Partners LP served as financial advisor to NEXT Insurance.
To learn more about NEXT Insurance, visit our website.
About NEXT Insurance
NEXT Insurance is transforming small business insurance with simple, digital and affordable coverage tailored to the self-employed. Trusted by over 500,000 business owners, NEXT offers policies that are easy to buy and provides 24/7 access to Live Certificates of Insurance, additional insured, and more. Revolutionizing a historically complicated insurance industry, NEXT utilizes AI and machine learning to simplify the purchasing process and provide more affordable coverage. Founded in 2016, the company is headquartered in Palo Alto, has received over $1.1 billion in venture capital funding, is rated "A- Excellent" by AM Best and has been recognized by CNBC Disruptor 50, Forbes Fintech 50, Inc.'s Best-Led Companies, and Forbes Best Startup Employers. For more information, visit NEXTInsurance.com. Stay up to date on the latest with NEXT on X, LinkedIn, Facebook and our blog.
The Allstate Corporation (NYSE: ALL) protects people from life’s uncertainties with a circle of protection including cars, homes, electronic devices, benefits and identity theft. Products are available through a broad distribution network including Allstate agents, independent agents, major retailers, online and at the workplace. Allstate is widely known for the slogan “You’re in Good Hands with Allstate.”
About Allianz X
Allianz X invests in digital frontrunners in ecosystems relevant to insurance and asset management. It has a portfolio of over 25 companies and AuM of more than 1.5 billion euros. Allianz X has counted 12 unicorns among its portfolio so far. The heart and brains behind it all are a talented team of around 40 people. As one of the pillars of the Allianz Group’s digital transformation strategy, Allianz X provides an interface between Allianz Operating Entities and the broader digital ecosystem, enabling collaborative partnerships in insurtech, fintech, and beyond. As an investor, Allianz X supports mature digital growth companies to take the next bold leap and realize their full potential. Keep up with the latest at Allianz X on Medium, LinkedIn, and X (formerly Twitter).
The Allianz Group is one of the world's leading insurers and asset managers with more than 122 million* private and corporate customers in more than 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 717 billion euros** on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage about 1.7 trillion euros** of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are among the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2022, over 159,000 employees achieved total revenues of 152.7 billion euros and an operating profit of 14.2 billion euros for the group***.
* Including non-consolidated entities with Allianz customers.
** As of June 30, 2023.
*** As reported – not adjusted to reflect the application of IFRS 9 and IFRS 17.
NEXT Insurance, Director of Corporate Communications