American Express is venturing into the insurance space with its latest funding endeavor.
This week, the credit card company went public with its investment in Palo Alto-based insurance tech startup, Next Insurance.
It joins Next Insurance’s $29-million May round of funding led by Munich Re’s HSB Ventures. With American Express’ investment, Next Insurance’s funding will be brought up to $35 million.
The up-and-coming industry that Next Insurance plays in is dubbed insurtech, which is hoping to infuse the insurance industry with digital technologies. Specifically, these types of startups are targeting smaller businesses that include personal trainers and contractors. With Next Insurance’s funding, the company is hoping to expand its offerings and gain business in new areas within the small business sector.
American Express Ventures’ managing partner, Harshul Sanghi, commented on this new investment. He said, “Finding the right insurance is often a time-consuming, complicated process for small-business owners. Next Insurance has simplified the process through its easy-to-use website and analytics.”