Next Insurance, an online small business insurance broker that sells industry-specific policies, just raised $29 million in Series A funding, despite recent news that InsurTech startup financing constricted earlier this year.
Based in Palo Alto, Next Insurance aims to simplify and streamline the small business insurance underwriting process by offering policies designed for particular professions including contractors, photographers, personal trainers, yoga instructors, janitors and landscapers. This round of funding is reportedly earmarked for expanding the service to additional industries.
The company previously raised $13 million in seed funding, according to TechCrunch. Munich Re/HSB Ventures led this round of funding. Markel, Nationwide, Liberty Mutual and Hiscox are also investment and service partners.
"The complexity of the small business insurance market is very significant and this leads to a situation where even the largest insurance providers own less than 10 percent of the small business market," Next Insurance founder and CEO Guy Goldstein told Tech Crunch. "This offers us huge growth potential as we aim to specialize in and become a market leader in each small business vertical."
Serving as a managing general agent, Next Insurance teams up with carriers and then takes a commission from the policies it sells.
Next Insurance joins a handful of other tech-driven insurance industry disruptors. That list includes Lemonade, Ladder, Insurify and Trov.
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