More than ever, small businesses need accessible and reliable insurance - especially as many are slowly re-entering the market after a year fraught with unexpected obstacles. Next Insurance has recognized those unique needs for small businesses, and as a result, is dominating the market.
Co-founded in 2015 by Guy Goldstein, Alon Huri, and Nissim Tapiro, Next Insurance has successfully accelerated its insurance product that is specifically streamlined and targeted for small businesses. Even through the height of the coronavirus pandemic, while small businesses were forced to stop operating, Next Insurance still netted $200 million in gross written premiums (i.e. the total revenue expected from customers across the lifetimes of their policies, before payouts to reinsurance). Topping off this success was a recent capital raise of $250 million, doubling the company’s valuation to $4 billion only 6 months after the previous round.
Supplementing a successful run in 2020 (that surpassed the company’s forecasted earnings by double), is what Chief Executive and Co-founder Guy Goldstein expects to be another stellar year. As cities start reopening, boosted by the rapid vaccine rollout, the stage is primed for small businesses such as restaurants, hairdressers, local stores, and entertainment venues to re-enter the market. With that will come a host of potential new clients who are wiser and more willing to be prepared in case of future disasters. Having successfully established itself as a small-business-focused insurer, Next Insurance will be well-positioned for further growth in this space.
The strategy to focus on small businesses is one that is sometimes ignored by other insurance companies who tend to focus on large market cap companies. Next Insurance’s mission to focus on this market only, and provide an excellent customer experience, has been integral to its rapid climb to the top.
"This latest round of financing is a validation of our vision which is to make it dramatically easier for small business owners to get the insurance coverage they need by removing friction from the customer experience,” said Goldstein.
The company plans to use the latest funding on big marketing campaigns that will supplement an existing word-of-mouth strategy. It also plans to utilize embedded financial services to integrate financial products into relevant software for a comprehensive financial experience.
Next Insurance is proof that focusing on a niche, overlooked market can be an enormously profitable strategy. They’ve succeeded by nailing an accessible and reliable product that, with a comprehensive focus on customer satisfaction, is solidifying its potential for further growth.