Next Insurance, a three-year-old US-based firm that sells insurance products to small businesses, has become the latest unicorn in the nation after raising $250m in a new financing round.
According to a joint statement from Munich Re and Next, the reinsurer was solely responsible for funding. The new financing round valued the start-up, which has raised $381m to date, at more than $1bn, the statement said.
Next Insurance co-founder and chief executive Guy Goldstein said the start-up will use the fresh capital to build new products and expand its customer initiatives. Next Insurance offers a wide range of insurance coverage to more than 1,000 unique types of business. It has amassed over 70,000 customers in the US, the only market where it currently operates.
Next Insurance aims to become a one-stop insurance shop for micro- and small-business insurance needs. Its insurance plans and products are designed to cater to the business sectors that are often overlooked by more general insurers.
The start-up offers a number of insurance products, including general liability, which covers a number of accidents at work, including property damage and physical injury; professional liability, which covers business owners from accusations of professional mistakes; and commercial auto, which pays for damage caused by or to your business vehicle.
In a statement, Munich Re chairman of the board of management Joachim Wenning said the new investment will help Munich Re expand its footprint in the U.S.’s insurance market of small and medium-sized commercial customers.
“Next Insurance will benefit from our expertise in primary insurance and reinsurance. This investment emphasises Munich Re’s commitment to be the leading provider of digital insurance solutions,” said Mr Wenning.
Next Insurance is not the only player attempting to address the insurance needs of small and micro-sized businesses. It competes with a handful of start-ups, including Lemonade, which raised $300m in April this year, and Root Insurance, which sells car insurance and raised $100m last year. A