How Does Next Insurance Make Money? The Next Insurance Business Model

Next Insurance is an insurance technology company founded by former co-workers Guy Goldstein, Alon Huri, and Nissim Tapiro. Drawing from the popularity of so-called insurtech companies they launched a website in 2016 with $13 million in funding. Next Insurance began by offering insurance tailor-made for photographers and personal trainers. Next Insurance makes money via the premiums it charges to customers every month.

Business Model Element	Analysis	Implications	Examples
Value Proposition	Next Insurance’s value proposition includes: – Tailored Coverage: Offering customized insurance policies that meet the specific needs of small businesses, including general liability, professional liability, commercial auto, and more. – Digital Convenience: Providing a user-friendly online platform for quotes, policy management, and claims filing, streamlining the insurance process. – Affordable Pricing: Offering competitive and transparent pricing to make insurance more accessible to small businesses. – Fast Claims Processing: Ensuring quick and hassle-free claims processing to support businesses in times of need. Next Insurance appeals to small business owners seeking convenient, affordable, and tailored insurance solutions.	Attracts small businesses looking for insurance coverage that fits their unique requirements. Enhances user satisfaction through a seamless online experience. Makes insurance more accessible to small businesses with competitive pricing. Builds trust by offering fast and efficient claims processing. Provides a valuable value proposition in the digital insurance sector.	– Small business owners seeking tailored insurance coverage. – Users looking for an easy-to-use online insurance platform. – Businesses searching for cost-effective insurance options. – Those valuing fast and efficient claims processing.
Customer Segments	Next Insurance primarily serves the following customer segments: 1. Small Businesses: Targeting a wide range of small businesses, including contractors, fitness professionals, beauty salons, and more. 2. Independent Professionals: Catering to freelancers and independent contractors in various industries. 3. Insurance Agents: Partnering with insurance agents who use Next Insurance’s platform to provide coverage to their clients. Next Insurance focuses on meeting the insurance needs of small businesses and independent professionals.	Targets a diverse range of small businesses across industries. Offers solutions to freelancers and independent contractors. Collaborates with insurance agents to extend its reach and services. Diversifies its customer base within the small business insurance sector.	– Small business owners seeking customized insurance coverage. – Independent professionals looking for coverage tailored to their work. – Insurance agents using Next Insurance’s platform for client coverage.
Distribution Strategy	Next Insurance’s distribution strategy includes: – Online Platform: Operating a user-friendly online platform where small businesses and independent professionals can obtain quotes, purchase policies, and manage their coverage. – Direct Marketing: Engaging in digital marketing efforts to reach and attract potential customers through online advertising and search engine optimization (SEO). – Partnering with Agents: Collaborating with insurance agents who use Next Insurance’s platform to offer coverage to their clients. – Mobile App: Providing a mobile app for users to access their policies and manage their insurance on the go. Next Insurance combines its online platform, direct marketing, agent partnerships, and mobile app to distribute its insurance offerings.	Provides users with a convenient online platform for insurance transactions. Utilizes digital marketing to reach and engage potential customers. Collaborates with insurance agents for broader market penetration. Offers a mobile app for on-the-go policy management. Implements a multi-faceted distribution strategy in the digital insurance sector.	– Using the online platform for insurance quotes and purchases. – Discovering Next Insurance through digital marketing efforts. – Partnering with insurance agents using the platform for coverage. – Managing insurance policies on the mobile app while on the move.
Revenue Streams	Next Insurance generates revenue through the following channels: 1. Premiums: Collecting premiums from policyholders for insurance coverage. 2. Service Fees: Charging service fees for policy changes, endorsements, and other administrative tasks. 3. Agent Commissions: Paying commissions to insurance agents who sell policies through Next Insurance’s platform. 4. Partnerships: Earning fees from partnerships with other businesses and platforms. Next Insurance diversifies its revenue streams through premiums, service fees, agent commissions, and partnerships.	Collects revenue through premium payments from policyholders. Charges fees for policy changes and administrative tasks. Pays commissions to insurance agents for policy sales. Earns fees from partnerships with other businesses. Diversifies income sources within the digital insurance industry.	– Paying insurance premiums for coverage. – Incurring service fees for policy changes and endorsements. – Earning commissions as insurance agents using the platform. – Partnering with Next Insurance for business purposes.
Marketing Strategy	Next Insurance’s marketing strategy involves: – Digital Advertising: Engaging in online advertising campaigns to increase brand visibility and attract potential customers. – Content Marketing: Creating informative blog posts, articles, and educational resources to inform and engage users. – Social Media Presence: Maintaining an active presence on social media platforms to connect with the audience. – Industry Partnerships: Collaborating with industry-specific partners to reach businesses in need of insurance. Next Insurance utilizes digital advertising, content marketing, social media, and industry partnerships to effectively market its insurance solutions.	Increases brand visibility through online advertising efforts. Provides valuable content to educate and engage users. Connects with the audience through social media interactions. Collaborates with industry partners for targeted marketing. Implements a comprehensive marketing strategy in the digital insurance sector.	– Encountering Next Insurance through online ads. – Reading informative blog posts and articles on the platform. – Engaging with Next Insurance on social media. – Discovering coverage options through industry partnerships.
Organization Structure	Next Insurance’s organizational structure includes: – Executive Leadership: Comprising executives responsible for strategic direction, decision-making, and overall company management. – Technology and Development Teams: Managing the platform’s technology, user experience, and digital infrastructure. – Sales and Customer Support Teams: Engaging with customers, providing support, and assisting with policy inquiries. – Marketing and Content Teams: Handling marketing campaigns, content creation, and user engagement efforts. Next Insurance maintains an organized structure to support technology development, sales, marketing, and user experience.	Led by executive leadership for strategic guidance and decision-making. Manages technology development and user experience for the platform. Provides customer support and assistance through dedicated teams. Focuses on marketing campaigns and content to engage users effectively. Maintains an organized structure aligned with its mission in the digital insurance industry.	– Executive leadership for strategic direction. – Technology and development teams. – Sales and customer support teams. – Marketing and content teams.

Table of Contents

Origin Story

Next Insurance is an insurance technology company founded in California by Guy Goldstein, Alon Huri, and Nissim Tapiro.

All three co-founders were former workmates at former software development company Mercury. After Mercury was acquired by Hewlett Packard in 2006, the trio created the payment app Check. This was also acquired two years later by software giant Intuit.

After meeting their contractual obligations with Inuit, the trio then decided to capitalize on the popularity of so-called insurtech companies. With a proven track record in the industry, a website was launched in 2016 with $13 million in funding. Next Insurance began by offering insurance tailor-made for photographers and personal trainers. Additional occupations were soon added, encompassing workers in beauty, cleaning, retail, consulting, education, restaurants, and therapy, among many others.

Today, the platform uses artificial intelligence and data science to process as many claims as possible in under 48 hours. After Next Insurance acquired US insurtech company AP Intego in 2021, annual revenue doubled to $400 million.

Next Insurance revenue generation

As a provider of insurance policies, Next Insurance makes money via the premiums it charges to customers every month. Profit is then earned when the money made from premiums exceeds the money it pays out for compensation claims.

Each premium is paid monthly as part of a subscription plan. For most professions, there is a Basic, Pro, and Pro Plus option.

Following is a look at some of the most popular policy plans by profession:

General contractors – starting at $62.50 per month for general liability insurance. Professional liability insurance is available for an additional fee.
Handymen, carpenters, and pressure washers – starting at $29 per month for general liability insurance. Again, there is the option to upgrade to include professional liability insurance.
Roofers – starting at $69 per month for general liability insurance.
Personal trainers – starting at $11 per month for general liability insurance. This encompasses bodily injury, dissatisfied clients, sexual misconduct, and harmful dietary advice.
Landscapers – starting at $29 per month for general liability insurance.
Childcare staff – starting at $33 per month. Here, general and professional liability insurance is bundled and offered in each of the three tiers.
Arborists – starting at $29 per month for a general liability insurance policy. This provides cover for bodily injury and resultant medical costs. Also covered are property damage and advertising harm, which protects against disputes arising from potential trademark or copyright infringements.
Painters and electricians – starting at $29 per month for general liability insurance. Electricians are also covered against bodily harm, property damage, and litigation that may arise after product completion.

Value Proposition:

Tailored Coverage: Next Insurance offers customized insurance policies designed specifically for small businesses, providing coverage that aligns with their unique risks, industry requirements, and budgetary constraints.
Simplified Process: With a user-friendly online platform and streamlined application process, Next Insurance makes it easy for small business owners to research, purchase, and manage their insurance policies entirely online, eliminating the need for lengthy paperwork and complicated procedures.
Affordable Pricing: Next Insurance aims to provide competitive and transparent pricing, offering affordable premiums and flexible payment options to accommodate the financial constraints of small businesses while ensuring adequate coverage.
Fast Claims Processing: In the event of a claim, Next Insurance facilitates a quick and efficient claims process, allowing small business owners to file claims online and receive prompt assistance from dedicated claims specialists, minimizing downtime and disruption to their operations.
Expert Support: Next Insurance provides access to knowledgeable insurance experts and customer support representatives who can offer personalized guidance, answer questions, and address concerns, ensuring that small business owners feel supported and informed throughout their insurance journey.

Marketing Strategy:

Digital Advertising: Next Insurance invests in digital advertising campaigns across online platforms such as search engines, social media, and display networks to raise brand awareness, target small business owners, and drive website traffic.
Content Marketing: Next Insurance produces educational content, blog posts, articles, and guides on topics related to small business insurance, sharing insights, tips, and industry expertise to engage and educate its target audience.
Industry Partnerships: Next Insurance forms strategic partnerships with industry associations, trade organizations, and business networks to promote its insurance offerings to their members, leveraging existing relationships and networks to reach potential customers.
Referral Program: Next Insurance incentivizes existing customers to refer other small business owners to the platform through its referral program, offering rewards or discounts for successful referrals, driving user acquisition through word-of-mouth marketing.
Email Marketing: Next Insurance utilizes email marketing campaigns to nurture leads, communicate with customers, and share relevant updates, promotions, and offers, maintaining engagement and fostering customer relationships over time.

Distribution Channels:

Online Platform: Next Insurance distributes its insurance products and services primarily through its user-friendly online platform, allowing small business owners to research, purchase, and manage their policies entirely online, providing a convenient and accessible experience.
Website: Next Insurance offers its services through its website, where users can learn about its insurance offerings, access educational resources, request quotes, and initiate policy applications, providing a centralized hub for customer interaction and engagement.
Referral Program: Next Insurance leverages its referral program to encourage existing customers to refer other small business owners to the platform, expanding its customer base through incentivized referrals and word-of-mouth marketing.
Industry Partnerships: Next Insurance partners with industry associations, trade organizations, and business networks to distribute its services to their members, leveraging existing networks and affiliations to reach potential customers within specific industries and verticals.
Digital Marketing Channels: Next Insurance utilizes digital marketing channels such as social media, search engines, and display networks to promote its services, target small business owners, and drive traffic to its online platform and website, expanding its reach and visibility within the digital landscape.

Key takeaways:

Next Insurance is an American online insurance platform founded by Guy Goldstein, Alon Huri, and Nissim Tapiro. The platform offers fast and accurate claim resolution using artificial intelligence and data science.
Like many traditional insurance companies, Next Insurance changes a monthly premium for insurance cover. Premiums are separated into Basic, Pro, and Pro Plus tiers depending on the desired level of general or professional liability coverage.
Next Insurance offers specific and tailored coverage for many professions, including painters, carpenters, electricians, arborists, and childcare staff.

Key Highlights

Founding and Background: Next Insurance is an insurtech company founded by former co-workers Guy Goldstein, Alon Huri, and Nissim Tapiro. They previously worked together at Mercury, which was later acquired by Hewlett Packard. After creating the payment app Check, which was acquired by Intuit, they decided to venture into the insurtech industry.
Launch and Funding: The company launched in 2016 with an initial funding of $13 million. They aimed to capitalize on the growing popularity of insurtech companies.
Target Audience: Next Insurance started by offering tailored insurance products for specific professions such as photographers and personal trainers. They later expanded to cover various other occupations including beauty, cleaning, retail, consulting, education, restaurants, and therapy.
Technology Integration: The company employs artificial intelligence (AI) and data science to efficiently process insurance claims. Their platform focuses on resolving claims within 48 hours.
Acquisition and Growth: Next Insurance acquired AP Intego, a US-based insurtech company, in 2021. This acquisition led to a doubling of their annual revenue, reaching $400 million.
Revenue Model: Next Insurance generates revenue through monthly premiums charged to customers. These premiums are paid on a subscription basis, with options for different coverage levels: Basic, Pro, and Pro Plus.
Coverage Plans: They offer tailored insurance plans for various professions, such as general contractors, handymen, carpenters, personal trainers, landscapers, childcare staff, arborists, painters, and electricians. The coverage includes general and professional liability insurance, addressing specific risks associated with each profession.
Affordable Options: Premiums for different professions vary, with affordable starting rates. For instance, personal trainers can get coverage starting at $11 per month, while general contractors’ plans begin at $62.50 per month.
Coverage Details: Policies cover a range of risks, including bodily injury, property damage, professional liability, sexual misconduct, harmful advice, and more, depending on the profession.
Fast Claim Resolution: The company’s focus on AI and data science enables them to process claims quickly and accurately, contributing to customer satisfaction.
Expanding Professionally: Next Insurance’s portfolio of tailored insurance plans for various professions demonstrates their commitment to serving specific market needs.
Profit Model: The company’s profits come from the difference between the premiums collected and the payouts made for compensation claims.