Allstate and Allianz are making a sizable bet on the digital transformation of the commercial insurance market with a $265 million strategic investment in Next Insurance, an insuretech startup focused on the small business market. "There's a massive opportunity with 30 million-plus small business owners in the U.S.," said Guy Goldstein, CEO and co-founder of Next Insurance. The commercial market is a much more complex one to transform digitally compared to personal lines where a generic application can be completed easily online. The small business market specifically is also one where owners often lack insurance expertise and internal finance staff to handle the policy decisions. "It's a $140 billion market but it is extremely fragmented," Goldstein said.

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Persons: Guy Goldstein, William Blair, William Blair's, Goldstein Organizations: Allstate, Allianz, Next Insurance, CNBC Locations: U.S