Verily, Alphabet's healthcare company, 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 company will also be supported by the Swiss Re group's commercial insurance unit, Swiss Re Corporate Solutions. The company will leverage Verily's expertise in integrating hardware, software, and data science, as well as Swiss Re Corporate Solutions' expertise in risk awareness, distribution capabilities, and reputation in the employer stop-loss market.
Loss limitation insurance
Coefficient plans to offer stop-loss insurance to self-funded employers to protect against large, unplanned employee medical benefit claims by reimbursing them for claims greater than a set amount. This type of insurance is generally purchased by employers who pay out-of-pocket for employees' medical claims. 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 that will be covered by benefits . more dynamic and accurate insurance policy provisions. Verily CEO Andy Conrad explained how Coefficient will reduce blind spots and provide better cost control mechanisms for self-funded employers in a press release announcing the new subsidiary: “Employers have faced rising healthcare costs growing and increasingly unpredictable for years. Coefficient aims to reduce blind spots and provide greater cost control mechanisms for self-funded employers, and we hope that the partnership with Swiss Re Corporate Solutions will help us better develop and distribute our precision risk solution to the market. the employers' stop-loss. Over time, we hope to integrate Coefficient into Verily's employer health solutions, including mobile health devices and innovative care management programs, to align payment models with better outcomes to Health Matters. Via The Verge