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.

SME Market4
Dynamics of Small Businesses in the US5
Small Business Count by Size & Industry6
A Top to Bottom Review of the Market9
2022 Commercial Lines Insurance Top 10 Writers9
New Entrants: How We Started, Where We Are10
2019-2023 US Commercial Investments20
Top 50 Funded Companies in the Commercial Sector21
Leading Investors23
Commercial Acquisitions36
Digital & Direct38
Leading in Online Traffic39
The Elephant in the Room40
Next vs Hiscox42
Hiscox’s Tipping Point44
Alternative Distribution45
Huckleberry is Embedded Insurance46
Key Embedded Insurance Partnerships49
Contemporary Legacy53
Incumbent-Owned D2C Modern Commercial Brands62
Final Words64

Unlock Report

Coverager Research
Coverager Research subscription gives you access to all our reports, premium articles, and more.
Already subscribed? Sign in to access this feature.
Learn more about Coverager Research.