SME Insurance: Trailblazers, Stragglers & the New Wave

This past week, Next Insurance has notably closed the gap with its main competitor, Hiscox, which serves over half a million small business owners. In a significant move, Next has secured a $265 million strategic investment from Allstate and Allianz X, elevating its total funding to $1.15 billion. This investment represents Allstate’s first foray into insurtech, whereas Allianz X has a history of backing commercial firms like Coalition and Pie Insurance. Speaking of Pie, they recently welcomed Audra Foglietta as their new CFO.

Despite the commercial insurance sector’s vibrancy, it is not without its challenges. Next hit two major milestones, yet it hasn’t reached the pivotal one—an exit. Guy Goldstein, the co-founder and CEO of Next, previously navigated his mobile wallet venture, Check, to a successful $360 million sale to Intuit in 2014 after seven years. With eight years at the helm of Next, the insurtech world seems to present different hurdles compared to his fintech experiences.

We believe that understanding the strategic plays within this industry is crucial. Thus, our research strives to go beyond the confines of the small, digital, and direct insurance market to shed light on SME insurance developments over the past year. This report includes an examination of new market entrants, investment trends, acquisitions, partnerships, and provides an in-depth analysis of Next, Hiscox, and others.