AI for Small Biz Insurance With Henry Tam

Henry Tam, Head of Business Development at Next Insurance, reveals how AI and automation are reshaping small business insurance from underwriting to claims.

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TL;DR:

Next Insurance uses AI to deliver instant underwriting, simplifying insurance for underserved Main Street businesses.
Claims processing is still evolving, but AI is already streamlining workflows and document validation behind the scenes.
Dynamic coverage models, like payroll-integrated workers’ comp, show how personalized insurance is becoming a reality.
Rich third-party and partner data powers AI-driven underwriting, reducing manual inputs and enabling real-time risk assessment.
“The best AI is invisible,” says Henry. Tech works best when it simplifies decisions without the customer even noticing.

Before we dive into the key takeaways from this episode, be sure to catch the full episode here:

Meet Henry - Head of Business Development at Next Insurance

Henry Tam leads Business Development at Next Insurance, where he drives strategic partnerships and growth initiatives across small business segments.

With a background rooted in tech and product-driven ecosystems, Henry brings a customer-first mindset to modernizing insurance. At Next Insurance, he’s helping build a fully digital experience for business owners, from bindable quotes to self-service policy management, all powered by AI and automation.

Henry’s work focuses on embedded insurance opportunities, dynamic coverage models, and scalable partnerships with platforms like QuickBooks and Gusto.

He champions AI not as a flashy tool, but as a quiet force multiplier. “The best AI is invisible,” he says. By focusing on real customer pain points, Henry helps make insurance feel less like a chore and more like a click.

Reimagining Small Business Insurance With AI

Next Insurance is rebuilding small business insurance from the ground up using automation and AI to serve a segment that has historically been underserved.

“We service primarily Main Street America type businesses,” says Henry Tam.

From general contractors to retail shops, Next provides policies that are easy to access and manage. What sets them apart is that they are both the carrier and the tech platform. “We’ve applied that ethos of ‘dare to simplify’ across the end-to-end insurance journey,” Henry explains.

The result is a digital-first, self-service experience that mirrors e-commerce simplicity. “The legacy carriers don’t have the automation built in for this segment to be viable,” Ankur notes. Next fills that gap by using technology to reduce friction and deliver faster, smarter coverage.

How AI Enables Instant Underwriting Decisions

Next Insurance leverages AI to provide instant decisions during underwriting, a major departure from the manual, time-consuming processes of traditional carriers.

“Our process is entirely algorithmic,” says Henry. “It’s either we accept, we give you a bindable quote, or we decline. Regardless, you get that instant decision.” This applies not only to direct customers but also to agents. “Even agents love that as well because they don’t have to spend too much time,” he adds.

AI models streamline the process by analyzing business details in real time, eliminating the need for supplemental applications or referrals to human underwriters.

“That time efficiency has been quite powerful in fueling our growth,” — Henry Tam

Instant decisions powered by data and AI help small business owners get insured fast and move on with their day.

Smarter Claims, Still With a Human Touch

Claims are often where insurance gets complicated, but Next is slowly bringing AI into the process to enhance, not replace, the human role.

“There are a lot of areas where AI will have application,” says Henry. He points to tasks like triaging, document validation, and streamlining workflows.

While a fully AI-driven claims pipeline is still a future goal, Next is actively exploring how to use AI to increase efficiency.

“The end goal isn’t to remove the human element,” Henry clarifies. “AI is only going to be a force multiplier.” Ankur echoes this:

“No claims adjuster can hold 10,000 cases in their head. AI can.” — Ankur Patel

AI’s real power is surfacing insights based on prior cases to assist human decision-making. In this model, people still steer the ship, but AI helps plot the course.

“Claims are complicated, but AI can streamline triage, document checks, and workflows.” — Henry Tam

Dynamic Coverage That Evolves With Your Business

Next Insurance is already implementing dynamic coverage that adjusts in real time as businesses evolve.

A prime example is how they integrate payroll data with workers' comp insurance. “As your payroll changes, as you add or remove employees, as their salaries change, your coverage and premiums will evolve,” Henry explains.

This is not just about better pricing; it reduces audits and surprises, too. “We already do some of that today,” he adds, calling it a model for future lines of business. Ankur praises this approach as “smart bundling” that uses real-time data to more accurately underwrite risk.

Because Next is both the carrier and the tech platform, it has the flexibility to innovate across the full insurance stack. The goal: coverage that adapts as fast as your business does.

Invisible AI Is the Best Kind of AI

For Henry Tam, the best AI is the kind you barely notice.

“The tech is really there to help the customer experience. In many ways, it’s best when the customer isn’t even aware that it’s there,” — Henry Tam

AI powers the behind-the-scenes workflows at Next Insurance, enabling instant decisions, streamlined service, and better partner integrations. Henry uses AI tools himself to research prospects, generate ideas, and even analyze insurance regulations. “It wasn’t until Gemini came out earlier this year where I felt this is kind of operating at the level of an MBA intern,” he says.

“You start skeptical, but then you see the value. That’s when trust builds.” — Ankur Patel

The real value comes not from hype, but from impact. “We’re here to solve pain points,” Henry emphasizes. And when AI quietly removes friction, that’s when it’s doing its best work.