The new company, Coefficient Insurance, will support employers through precision risk, a new data-driven solution to employer stop-loss insurance
Alphabet, the parent company of Google, announced that its subsidiary Verily has launched a new insurance company, Coefficient Insurance.
The new insurance company will be supported by Swiss Re Corporate Solutions, a commercial insurance unit of Swiss Re Group.
The new company, Coefficient Insurance, will use Verily’s core strengths integrating hardware, software and data science and Swiss Re Corporate Solutions’ risk knowledge, distribution capabilities and reputation in the employer stop-loss market.
Coefficient Insurance aims to combine new health technology solutions with latest insurance and payments models.
The company claims that its precision risk solution uses a data-driven model and can support self-funded employers in controlling their cost volatility in the traditional employer stop-loss market.
Employer stop-loss insurance protects self-funded employers from unexpected and large employee health benefits claims by reimbursing employers for claims above a defined amount.
Verily CEO Andy Conrad said: “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.”
Coefficient to use analytics-based underwriting engine to unexpected areas of cost volatility
The precision risk solution of Coefficient has been designed to offer self-funded employers with more predictable benefit plan protection. The new insurance firm will employ an analytics-based underwriting engine, which will identify unexpected areas of cost volatility and cover them using precise insurance policy provisions.
The company also plans to integrate Verily’s array of health services and tech-driven interventions for workers and dependents into its precision risk solution.
Swiss Re Corporate Solutions CEO Andreas Berger said: “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.”
Swiss Re Corporate Solutions has also agreed to invest in a minority stake in Coefficient Insurance, subject to certain closing conditions and regulatory approvals.