German insurance giant Ergo After the acquisition, it has expanded to the US Next insurance.
The $2.6 billion deal announced in a news release on Friday (March 21) allows Ergo – Munich Re – Targets the US small business community of 30 million companies.
“However, this type of insurance penetration between companies remains relatively low, as 75% of small and medium-sized businesses in the U.S. are considered a shortage of insurance,” the release states. “The total addressable market is highly fragmented, estimated at around $175 billion, with significant growth potential.”
Founded in 2016, the next one is based in Palo Alto, California. Real Estate and Cause Insurance It focuses on small businesses and offers services that include general liability and workers’ compensation coverage. The release pointed to the company’s “significant growth” over the past eight years, generating a top line of $548 million in 2024.
“This transaction will move us forward, expand our technology-driven approach and further strengthen our SME ownership with innovative insurance solutions,” he said. Guy Goldsteinnext CEO.
“The strength and expertise of Ergo and Munich RE, as well as their perceived RE/insurance know-how, are poised to lead the charges when reconsidering US small business insurance.”
In other insurance news, Pymnts spoke recently One Inc. Chief Revenue Officer Kevin Ostrander Who said payments within that industry are inefficient and can often be paper-based.
Still, the sector said he was ” Large scale digital conversion Over the past 20 years we are committed to accelerating workflows and payments.”
“The transformation initially focused on the core system, in which carriers began to move from legacy systems, which housed hundreds of applications that controlled and performed insurance operations, from billing to billing,” writes Pymnts.
Careers have worked to streamline various processes and promote an optimized customer experience, Ostrander told PYMNTS.
Regarding payments, he added, “When you think about payments in general, the concept of accepting or paying payments is not very complicated.”
Complications come from reaching the point of how and when an insurance company and its customers can pay each other and Where they want to be paid.
“Paper is still dominant Within the insurance industry, both on the inbound premium side and on the spending side,” Ostrander said.
