American Express has invested in Palo Alto-based insurance company Next Insurance. They had previously raised $29 million in May and this new investment brings the total of $35 million. Next Insurance is an online based insurance company focusing on small business insurance. They differntiate themselves by focusing on customers that have been disregarded by large insurers in the past. American Express & Next Insurance are reportedly in early discussions on a possible partnership.
I doubt we will see any additional insurance benefits for consumer cards in particular as a result of this investment. It wouldn’t surprise me if American Express did add additional business insurance to their business OPEN cards or to leverage their OPEN cardholders to drive more customers to Next Insurance. It is important to note that Next Insurance doesn’t underwrite the insurance themselves, instead relying on the traditional players in that market.
Hat tip to /r/churning
