It was just seven months ago when we wrote about Next Insurance garnering a $250 million Series D round. The Next leadership team must like that number. Because we learned last week that the company has raised another $250 million round and doubled its valuation from $2 billion to $4 billion. Next has now raised $631 million since its 2016 launch.
We cover Next because of its focus on selling insurance to small businesses. They offer small businesses worker’s comp, commercial auto, and general liability.
Over roughly the past year the company has doubled its gross written premium (GWP). According to Next, its GWP reached a $200 million run rate in February of this year. The company now serves more than 130,000 small businesses.
For more background, here is what we wrote about Next last October.
The company claims it can drive down the cost of insurance by as much as 30% for small businesses and self-employed operators. And, notably, the company has been able to acquire about 100,000 business customers. This makes it a leader among new entrants in the SMB space.
By way of comparison, last week we wrote that Thryv had some 45,000 customers using its SaaS solution. Both of these pale in comparison to [the] estimated 3.6 million businesses that use QuickBooks. Or even the 1 million businesses using Shopify. Next Insurance can offer insurance solutions to some 1,300 types of businesses in 50 states and provides six insurance offerings, including General Liability, Professional Liability, Commercial Auto, and Workers’ Compensation coverage.
Still a Long Way to Go
Next is working to build its agent business. According to the company, its “Next for Agents” business doubled over the last year as they added more services and enhanced the agent partner portal with self-service tools. We’d expect the company to continue to bolster its portal for agents.
Building its agent business is essential for Next. Otherwise, it cannot achieve the scale required to elevate the company into the big leagues of recognizable insurance brands. While the jump to $200 million GWP is solid, the large national brands write billions in GWP. So while its journey thus far is impressive, Next still has a very long way to go.