Verily unveils new subsidiary for stop-loss health insurance: 5 things to know  

Google sister company Verily is establishing a  subsidiary that will apply technology and data-driven solutions to employer-sponsored stop-loss insurance. 

Five things to know: 

1. Swiss Re Group's commercial insurance unit Swiss Re Corporate Solutions will back the  subsidiary, dubbed Coefficient Insurance Co., according to the Aug. 25 news release. 

2. Coefficient plans to use a data-driven model to provide self-funded employers with a new tech-based approach to employer stop-loss, a type of insurance that protects self-funded employers from unpredictable losses. 

3. Coefficient will use Verily's hardware, software and data science as well as Swiss Re's risk knowledge and distribution capabilities. The company also plans to integrate Verily's health devices and tech interventions for workers and dependents into its precision risk solution. 

4. The new subsidiary uses an analytics-based underwriting technology to detect unexpected areas of cost volatility and cover those areas to reduce exposure. 

5. Swiss Re has agreed to make a minority investment in Coefficient, but it is subject to certain closing conditions including regulatory approvals. 

"Employers have been facing rising and increasingly unpredictable healthcare costs for years,” Verily CEO Andy Conrad said in the news release. "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." 

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