Verily, an Alphabet company, announced that it would enter the health insurance business with a new subsidiary named Coefficient Insurance.
Coefficient, backed by Swiss Re Corporate Solutions, the commercial insurance unit of the Swiss Re Group will sell stop-loss insurance. Employer stop-loss is a segment of commercial insurance that protects self-funded employers from unexpected and large employee health benefit claims by reimbursing employers for claims above a defined amount.
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 cost volatility areas 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,” said Andy Conrad, CEO, Verily.
“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.”
Swiss Re Corporate Solutions has agreed to make a minority investment in Coefficient, subject to the satisfaction of certain closing conditions, including regulatory approvals. As part of the investment, Ivan Gonzalez, CEO North America, Swiss Re Corporate Solutions, is expected to join the Coefficient Board of Directors upon closing.