The healthcare business segment, named Verily by Alphabet, is now covering a new subsidiary working in stop-loss insurance. It is a specific type of insurance cover meant for employers. The coefficient insurance company, involved in this, will use data analytics to reduce risks and make predictions.
Stop-loss insurance is a relatively different concept where employers can self fund their plans. The cover includes sudden and catastrophic health benefits. Usually, outside insurers are the providers of such a service to the owners.
For those who go with such insurance, self-funded business owners primarily will be paying some amount of their employees’ claims while the stop-loss insurance company will pay the rest of the amount.
Swiss Re, the company backing a Coefficient insurance company, already has the distribution network and knowledge of the stop-loss insurance segment with a value of more than $20 billion. Verily will be the one to bring the tools, hardware, and software into the mix so Coefficient and do the analytics.
The three companies will be working together soon, while Swiss Re is already an investor in Coefficient. North American CEO of Swiss Re Corporate Solutions is also joining the company’s board of directors very soon, which solidifies the venture’s entire deal.
Verily has been doing remarkable work in the healthcare segment, which would be a new venture for the company. Many health gadgets have been recently launched by the company, including a smartwatch with electrocardiogram technology built-in.
Project Baseline, a four study of human health around the globe, has also been conducted by Verily. Along with this, the company has been involved in medical research and research on COVID-19 testing solutions. Insurance seems like the next step where Verily plans to expand into.
For the venture that lies ahead, it is expected the Coefficient would first solidify the insurance aspect of it. Verily is further interested in inducing smartwatches or any other devices that have been built by them, similar to being able to be involved in tracking employees’ health for the stop-loss insurance.
In a recent press release, it was informed that “Over time, Coefficient plans to integrate Verily’s suite of health devices and tech-driven interventions for workers and dependents into its precision risk solution to improve health outcomes and control cost.”
It is also believed that the stop-loss insurance market might be a bit crowded currently. Still, the three companies together bring in something that involves tech-based underwriting to determine potential areas of cost volatility. Eventually, the exposure would be reduced by covering more areas of risk.
Verily’s President of Health Platforms Vivian Lee also commented on the new venture, saying, “We’re hoping to be more personalized in the way we offer health solutions.”
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