Next Insurance, a technology-focused commercial insurance platform for small businesses, has raised $400 million at a $5 billion valuation. The company aims to simplify the notoriously complex process of buying and managing business insurance for small companies.
The platform uses AI to underwrite policies in minutes, a process that traditionally takes days or weeks through conventional brokers. Small business owners answer a few questions about their operation and receive customized quotes for general liability, professional liability, workers' compensation, and commercial auto coverage.
Next Insurance now covers over 500,000 small businesses, processing $2 billion in annual premiums. The company's loss ratios are competitive with traditional carriers despite the automated underwriting, suggesting that AI risk assessment is mature enough for commercial lines.
The funding will support expansion into additional coverage types including cyber insurance, employment practices liability, and parametric weather coverage for outdoor businesses. International expansion to the UK and Canada is also planned.
Traditional commercial insurance brokers face increasing pressure from tech-enabled competitors. While complex large-business accounts still require human expertise, the small business segment is rapidly moving toward digital-first distribution.
