Alphabet's Verily begins offering stop-loss health insurance

Coefficient Insurance Co. is backed by Swiss Re Corporate Solutions.

Sponsored Links

Verily logo

Verily, Alphabet’s healthcare business, is overseeing a new subsidiary that will offer stop-loss insurance to employers. Coefficient Insurance Company is backed by insurance megacorp Swiss Re, and relies on data analytics to predict and reduce risk.

Stop-loss insurance is designed to help employers who self-fund their plans cover sudden, catastrophic health benefit claims. Under this system, self-funded business owners pay up to a certain amount of their employees’ claims, and the stop-loss insurance company pays what’s left.

Verily is bringing the hardware, software and data science to Coefficient, while Swiss Re has the distribution network and practical knowledge in the $20 billion stop-loss market. Swiss Re made a minority investment in Coefficient, and the North American CEO of Swiss Re Corporate Solutions is poised to join the new company’s board of directors.

Verily is responsible for a suite of health gadgets, medical research and COVID-19 testing solutions, and it’s the company behind Project Baseline, a comprehensive four-year study into human health around the globe. To that end, Verily created a smart watch with electrocardiogram technology built-in.

Once Coefficient Insurance finds its footing, Verily wants that smart watch and any other devices it builds to play a role in tracking employees’ health.

“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,” a press release reads.

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Popular on Engadget