Small business owner.
Small businesses have unique insurance needs (Photo: ShutterStock)
Next Insurance: the insurance company that thinks small
The biggest premiums of the insurance world are found in the big businesses.
This is the reason why many small business owners do not receive adequate insurance coverage.
An Israeli insurtech company decided to try to fix the situation - and along the way, also make money from it
Tseli Greenberg
Small businesses are built on people who dream big, who sometimes fall into the worst nightmare of all and lose their ten fingers overnight.
Whether it was water damage from a pipe that exploded in an old building, a fire that broke out in a store, or a claim from a disgruntled customer - the small businesses are exposed in the business tower, and about half of them have no protection at all.
It is estimated that about 44% of small businesses in the world operate without any type of insurance, and this is mainly due to its cost.
The "orphans" of the business insurance claim that one of the reasons they have difficulty finding an insurance foster family is that the traditional and large companies do not invest the time and willingness in them, since the large premiums are found in the large businesses.
Three Israeli entrepreneurs decided to harness technology to solve the problem and along the way also make money.
They founded the insurtech company 'Next Insurance', which adjusts and makes available dedicated insurance policies for small businesses through digital means.
The data from the American Insurance Information Institute, which is actually an association on behalf of the insurance companies in the USA, show that the main insurance products required for small businesses are building insurance, liability, third party, workers' compensation, and professional insurance.
A report by the consulting firm McKinsey, published in the middle of last May, revealed that 65% of the insured small businesses are not satisfied to one degree or another with their insurance coverage and the insurer, and that about half of them will change insurers if there is any change in their business (25%) or a price change insurance (23%).
The entire small business insurance market was approximately $137 billion in 2022, and according to a report by the consulting firm Deloitte from last March, most small businesses (85.2%) are open to examining the purchase of insurance even from insurance companies that are not defined as 'Traditional', such as the digital insurance companies.
It should be noted that the insurtech market was about $8.8 billion in 2022, which was a tiny fraction of the total international insurance market that was about $6 trillion that year.
The number of small businesses in the US, on which Next Insurance focuses, is approximately 33 million, which are required to bear costs of several hundred to thousands of dollars per year, depending on the region,
According to Next Insurance, the popular types of insurance for small businesses are, among others, disability, general and professional liability, car insurance intended for work needs, and office insurance (structure and contents).
The company reports that 50% of its customers pay an average of $25-45 per month for general business liability insurance.
Guy Goldstein (54) who also serves as the CEO of the company, Alon Khoury (46), and Nissim Tapiro (52) who serves as CTO (Photo: Next Insurance)
Next Insurance ID card
Field of activity
: Insurtech.
In the small business niche
Date of establishment
: 2016
Founders: Guy Goldstein (54) who also serves as CEO of the company, Alon Khoury (46), and Nissim Tapiro (52) who serves as CTO
Vision:
To reduce the risk experienced by small businesses around the world and become their insurance house
Employees
: 660 employees worldwide The
company's total fundraising since its establishment
: 881 million dollars
Among the investors
: Munich Re/ERGO, Capital G, Battery Ventures, FinTLV
Among the company's clients
: about 400 thousand small businesses such as restaurants, building contractors, accountants, guides Fitness, legal service providers, etc.
Companies operating in the field
: Coalition, Pie Insurance, Newfront, Embroker
CEO's statement
: "We started NEXT to reduce the levels of risk in which small businesses operate today, by making dedicated and customized insurance products accessible through digital means.
We arose with the goal of enabling the small business community to leverage technology and artificial intelligence for the benefit of protecting their livelihoods, and we are proud of the trust we receive from the community This, which continues to grow as a customer base for our insurance products.
Today we are the only insurtech company operating in the field of small business insurance that received the A - Excellent rating by the independent rating company AM Best."
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Of money
Insurance
Tags
Insurance
online
small businesses
