// May 2, 2025
(Image source: NEXT Insurance.)
NEXT Insurance has always positioned itself as a digital-first, small-business-focused carrier with a mission to simplify commercial insurance for America’s smallest enterprises. Now, as it prepares to become part of ERGO Group, the primary insurance arm of Munich Re, NEXT enters a new phase—one of expanded resources, capital freedom, and intensified technological ambition.
“We’re doing fantastic,” comments Effi Fuks-Leichtag, Chief Product Officer, NEXT Insurance. “We’ve surpassed 600,000 active customers, and our fundamentals—growth, loss control, profitability—are where we want them to be.”
Effi Fuks-Leichtag, Chief Product Officer, NEXT Insurance.
NEXT’s success is grounded in its direct-to-consumer digital strategy, but the company now maintains a balanced distribution mix that includes agent-driven sales and embedded insurance solutions. The agency channel, once a long-term bet, is now growing rapidly and may soon become the largest.
A Clear Small Business Focus
NEXT was founded in 2016 to serve U.S. small businesses—especially microenterprises and sole proprietors—with streamlined, digital insurance products. “A large portion of our customers have zero to one employee,” Fuks-Leichtag notes. “We’re particularly strong in professional services and construction and gaining traction in food and beverage, with retail products coming soon.”
The company has also started moving “upmarket,” targeting businesses with more complex needs, such as multi-location operations or employees across multiple states. “We’re not insuring Amazon,” he jokes, “but we are innovating to serve larger small businesses without compromising our digital-only promise.”
This includes rethinking how policies like workers’ compensation are structured for distributed teams. “Instead of handing off the process to an underwriter, we use a digital questionnaire to create subflows that ultimately merge into a unified, easily maintainable policy,” he explains.
The ERGO Acquisition: Removing Constraints
NEXT’s acquisition by ERGO, announced in March 2025 at a valuation of $2.6 billion, is more than a change of ownership—it’s a release of pressure, Fuks-Leichtag suggests. ERGO had already been a long-term reinsurance and capital partner and held a significant equity stake. Now, as a full subsidiary, NEXT is freed from capital burdens and quarterly funding pressures.
“All of a sudden, you have a roof, a shelter,” he says. “You can be strategic. You can plan a 10-year roadmap instead of just winning the next quarter.”
With ERGO and Munich Re behind it, NEXT gains the credibility to engage with top agencies and digital distribution partners at a new level. “We’re no longer the promising insurtech startup—we’re part of one of the most capitalized insurance organizations in the world.”
Technology-Driven Expansion Ahead
NEXT’s technology roadmap remains intact—and may even accelerate. The company is preparing major releases involving AI in claims, customer service, and digital engagement. “We’ve seen astonishing results,” Fuks-Leichtag says. “Customer satisfaction with AI interactions is opening a new paradigm.”
He also anticipates faster product launches, including new lines of business. While NEXT already sells general liability, workers’ compensation, professional liability, and commercial property in all 50 states, some underserved segments may now become viable. “We used to hold back in areas where our digital underwriting model wasn’t a fit. Now, with ERGO’s backing, we can revisit those decisions.”
A Mutually Beneficial Partnership
ERGO brings scale, capital, and 140 years of insurance expertise. NEXT brings entrepreneurial speed and a deeply digital culture. “They have visionary leadership,” Fuks-Leichtag says of ERGO. “We bring modern go-to-market approaches, technical innovation, and agility. It’s a powerful combination.”
NEXT will remain focused on its original mission: helping entrepreneurs thrive with simple, tailored insurance. But under ERGO, it’s now equipped to do so at a much larger scale—and with the long-term vision to transform how insurance is delivered to America’s 30 million small businesses.
NEXT Insurance Acquired by Munich Re’s ERGO for $2.6b
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