Insurtech Next Insurance has raised $250m in a Series C funding round led by Munich Re.

The funds are to be used for product developed as Next scales its small business insurance products. In addition, it will accelerate its customer expansion plans and continue its drive to make the firm a one-stop shop for SME P&C insurance. It aims to offer coverage that is simple, affordable and tailored to the specific needs of every business.

Total funding for Next Insurance now lies at $381m in just over three years and the insurtech has a valuation of over $1bn.

“We have been working with Munich Re since the beginning, and they have been a great partner in helping us grow and develop our business,” said Guy Goldstein, co-founder and CEO of Next Insurance.

“We launched Next Insurance in order to transform the small business insurance industry and this new investment will continue to help us grow our team, develop our technology, deliver phenomenal service and accelerate customer growth. We are excited about the future of insurance and are proud to be, together with Munich Re, drivers of industry change.”

“Next Insurance’s data- and technology-driven business model offers outstanding growth opportunities, which we will harness together,” said Joachim Wenning, chairman of the board of management at Munich Re.

“Next Insurance will benefit from our expertise in primary insurance and reinsurance. This investment emphasises Munich Re’s commitment to be the leading provider of digital insurance solutions. It also helps Munich Re expand its footprint in the promising insurance market for small and medium-sized commercial customers in the United States. We are confident that building on our proven collaboration will benefit both Munich Re and Next Insurance.”

Next Insurance provides digital small business coverage across the US. It also allows businesses to acquire all P&C insurance products in one place. Furthermore, the insurtech provides coverage to over 1,000 types of business with tailored policies.