how-does-next-insurance-make-money-the-next-insurance-business-model

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.

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:

  1. General contractors – starting at $62.50 per month for general liability insurance. Professional liability insurance is available for an additional fee.
  2. 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.
  3. Roofers – starting at $69 per month for general liability insurance.
  4. Personal trainers – starting at $11 per month for general liability insurance. This encompasses bodily injury, dissatisfied clients, sexual misconduct, and harmful dietary advice.
  5. Landscapers – starting at $29 per month for general liability insurance.
  6. Childcare staff – starting at $33 per month. Here, general and professional liability insurance is bundled and offered in each of the three tiers.
  7. 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.
  8. 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.

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.

Read Also: How Does Lemonade Make Money.

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