Allianz invests in US insurtech NEXT
Allianz’s digital investments arm Allianz X has invested in California-based insurtech NEXT Insurance alongside US insurer Allstate, with combined funding of $US265 million ($416.61 million).
NEXT uses proprietary machine learning algorithms and targets the more than 33 million small businesses in the US. It has half a million customers so far, offering General Liability, Commercial Property, Workers’ Compensation and more.
Allianz X says it decided to invest in NEXT because of "the remarkable growth and potential it has demonstrated, as well as the attractiveness of the B2B small business insurance market in the US, which remains ripe for disruption”.
“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,” Allianz X said.
"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 CEO Nazim Cetin says NEXT Insurance understands the needs of small businesses “deeply”.
“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,” Mr Cetin said.
NEXT was co-founded by CEO Guy Goldstein in 2016 and has received over $US1.1 billion ($1.72 billion) in venture capital funding. It will now offer insurance to millions of Allstate customers and the pair will co-develop commercial auto products to target small businesses
Allianz X has a portfolio of 25 companies and counts 12 “unicorns” among its portfolio so far. Last year, it led the two largest US insurtech rounds, Pie Insurance and Coalition.