NEXT Insurance, a digital insurtech company, has earned an A+ (Superior) Financial Strength Rating and an aa (Superior) Long-Term Issuer Credit Rating from AM Best. Concurrently, the company is nearing a milestone of 750,000 small business customers nationwide. These developments follow NEXT’s full acquisition by ERGO, the primary insurance company of Munich Re, in 2025.
AM Best, a credit rating agency for the insurance industry, utilizes these ratings as a benchmark for assessing an insurer’s financial strength and long-term stability. The A+ rating for NEXT Insurance signifies its inclusion as a member of the lead rating unit, Munich Reinsurance Company (Munich Re). This affiliation underscores NEXT’s ability to support entrepreneurs across various industries, backed by Munich Re’s financial strength and reliability. It also highlights how NEXT’s technology aligns with Munich Re Group’s strategic initiatives, supporting sustainable growth for current and future customers.
Teodora Gouneva, Chief Financial Officer of NEXT, stated, “Being included in Munich Re Group’s A+ rating from AM Best is a landmark moment for our team and the entrepreneurs we serve. This rating validates the strength of our model and gives small business owners confidence that their coverage is backed by one of the most trusted authorities in the industry.”
This rating coincides with NEXT approaching 750,000 small business customers. Established in 2016, NEXT aimed to address the gap in the small business insurance market, where traditional insurers often provided inflexible and expensive policies, leaving entrepreneurs inadequately covered. NEXT integrates insurance expertise with a digital-first model to offer fast, affordable, and customized protection.
Tim McDermott, director of insurance product management at NEXT, commented, “Small businesses are the backbone of the economy, and NEXT is proud to support nearly 750,000 entrepreneurs. Our mission has always been to make insurance simple and affordable so business owners can focus on running their companies with confidence. This milestone reflects the trust they place in our expertise and technology, and it inspires us to keep innovating.”
NEXT currently serves over 1,300 professions and has experienced growth across key markets such as professional services, hospitality, retail, and construction. Its proprietary technology facilitates a fully digital experience, including instant quotes, streamlined underwriting, and data-driven risk assessments that tailor coverage to specific business needs. This digital approach, combined with guidance from agents and advisors, aims to ensure small and medium-sized businesses (SMBs) receive appropriate protection for their evolving risks without delays.
The company has demonstrated market momentum through product innovation and expansion. Over the past year, NEXT expanded its Business Owners’ Policy to 41 states, including New York and Texas, introduced multi-location workers’ compensation coverage, and launched standalone Professional Liability coverage designed for consultants. Additionally, new digital tools, such as ACH Payments, Coverage Builder, and Agent Copilot, have been introduced to streamline workflows for small business owners, agents, and partners.
