Alphabet's healthcare company Verily has announced that it will launch a new subsidiary as part of its push into the insurance market.
The new subsidiary will be called Coefficient Insurance Company and in addition to Verily, the new outfit will also be backed by the commercial insurance unit of the Swiss Re Group, Swiss Re Corporate Solutions.
The company will leverage Verily's experience with integrating hardware, software and data science as well as Swiss Re Corporate's Solutions' expertise in risk knowledge, distribution capabilities and reputation in the employer stop-loss market.
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Coefficient plans to offer stop-loss insurance to self-funded employers in order to protect them from unexpected and large employee health benefit claims by reimbursing them for claims above a defined amount. This type of insurance is typically purchased by employers that pay for employee health claims out of pocket.
The company's precision risk solution is designed to provide self-funded employers with more predictable benefit plan protection by using an analytics-based underwriting engine to identify unexpected areas of cost volatility which will be covered with more dynamic and precise insurance policy provisions.
Verily CEO Andy Conrad explained how Coefficient will reduce blind spots and provider improved cost control mechanisms for self-funded employers in a press release (opens in new tab) announcing the new subsidiary, saying:
"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."
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Via The Verge (opens in new tab)