“Last Tuesday, we accelerated our transition to profitability and independence by cutting our burn through leaner expenses and, unfortunately, organizational changes including layoffs.”Ĭarrier Management reported earlier this year that technology company Root Inc., the Columbus, Ohio-based parent company of Root Insurance, laid off approximately 330 team members throughout its business in January.Ĭo-Founder and CEO Alex Timm in an emailed statement cited pandemic losses as factoring into the decision. “Thimble’s vision is to become an iconic, independent, profitable insurance company,” Dang said in the statement. All affected employees will be offered severance and assistance in securing new employment, according to Dang. In an emailed statement provided to Insurance Journal’s sister publication, Carrier Management, Thimble Chief of Staff Han Dang said the move aims to accelerate the company’s transition to profitability. The news of NEXT’s layoffs closely followed July 5 layoffs at another insurtech – Thimble – where a reported 33% of the workforce was let go. We will work with partners to deliver this coverage to our customers.” In the meantime, we’ve decided to focus on our leading products while postponing others, such as commercial auto. “Our goal is to provide products that are uniquely tailored and competitively priced and this requires time. “NEXT is committed to our vision to help entrepreneurs thrive and to become a one-stop-shop for small business insurance,” a NEXT spokesperson said in an emailed statement about its future plans. “However, in order to set NEXT on a clear path to becoming profitable, I was left with the hard choice to reduce the size of our team.”ĭeparting employees will receive severance that also includes extended company-paid medical benefits and mental health services, if applicable, the option to keep their company laptop and office equipment, and job search support. “Earlier this year, we reduced operating costs, discretionary spending, marketing spend, and consolidated functions for greater efficiency,” he said in the letter. He added that NEXT is also focused on managing costs after evaluating its plans for the coming years and determining its expenses are too high for the company’s current revenue and insurance capital requirements. Goldstein said in the letter that worsening economic conditions, as well as the company’s focus on profitability for long-term stability, factored into the decision. As difficult as this is, it is my responsibility to adjust our priorities in light of the new reality of market conditions and to accelerate NEXT’s goals to become profitable.” “This is one of the hardest decisions I have made in my professional life and one I take very seriously. We’re not done improving the lives of small business owners, but we’re proud of what we’ve accomplished thus far.“I am making an incredibly hard decision to part ways with many of our friends and colleagues in an effort to adapt to the worsening macroeconomic environment and to secure the long-term vision of the company,” NEXT CEO and Co-Founder Guy Goldstein shared in the letter. “It starts with developing a comprehensive digital product portfolio under one roof, continues with leveraging technology that improves the customer experience, and ends with a network of integrated partnerships that bring policy purchasing to the customer within the systems they already use. Speaking about the latest investment round, Guy Goldstein, Co-Founder and CEO of Next Insurance, explained that the financing is a validation of the company’s mission, to make it easier for small business owners to acquire the insurance cover they need by removing issues from the “customer experience.” Goldstein then added: FinTLV Ventures founder and managing partner Gil Arazi and Battery Ventures general partner Michael Brown will join as board observers. The company also recently announced two acquisitions, added new strategic partners and doubled its gross written premium. The latest investment round comes just a little over six months after Next Insurance raised $250 million through its Series D funding round. Revolutionizing traditional insurance processes, Next Insurance is utilizing advanced technology to offer the industry’s most innovative small business insurance policies.” “ Next Insurance offers policies that are easy to buy with instant, 24/7, online access to services such as Live Certificates of Insurance, Additional Insured, and more with absolutely no extra fees. As previously reported, Next Insurance is on a mission to transform small business insurance with “simple, affordable” coverage that is tailored to the needs of each class of business.
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