Verily enters the stop-loss health insurance market
Verily, an Alphabet company, is announcing a new subsidiary Granular Insurance that will be backed by Swiss Re. Coefficient will combine “innovative health technology solutions with novel insurance and payment models” to protect self-funded employers from unexpected and large employee health benefit claims.
Coefficient’s “precision risk solution” is designed to provide self-funded employers with more predictable benefit plan protection. It uses an analytics-based underwriting engine to identify unexpected areas of cost volatility, and cover those exposures with more dynamic and precise insurance policy provisions. 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.
“Employers have been facing rising and increasingly unpredictable healthcare costs for years. Coefficient is aimed at reducing blind spots and providing greater cost control mechanisms for self-funded employers, and we expect that partnering with Swiss Re Corporate Solutions will help us to better develop and distribute our precision risk solution to the employer stop-loss market. Over time, we look forward to integrating Coefficient with Verily’s employer health solutions, including mobile health devices and innovative care management programs, in order to align payment models with better health outcomes.” – Andy Conrad, CEO, Verily.
“Swiss Re Corporate Solutions has long prided itself for being a knowledge-based and data-driven insurer. Today, we’re building on that strong foundation by partnering with Alphabet’s Verily to use advanced technology and data analytics to innovate risk management in the employer stop-loss space. We look forward to working with Coefficient in delivering on our mission to address industry inefficiencies, provide an outstanding customer experience and advance corporate insurance together.” – Andreas Berger, CEO, Swiss Re Corporate Solutions.
Swiss Re Corporate Solutions has agreed to make a minority investment in Coefficient, subject to the satisfaction of certain closing conditions including regulatory approvals. In connection with this investment, Ivan Gonzalez, CEO North America, Swiss Re Corporate Solutions, is expected to join the Coefficient Board of Directors upon closing.