What if Google collects your health data and then calculates your insurance amount? Verily, Alphabet’s health division – the parent company of Google – is investing in the sector anyway. The firm announced Tuesday, August 25, 2020 the creation of a new subsidiary, called Coefficient Insurance. It will be supported by the business insurance specialist Swiss Re Corporate Solutions.
“An analytics-based pricing engine”
The market on which Coefficient wants to position itself is very American: insurance for companies which themselves cover health insurance for their employees. They are calculated according to scales that classify the cost, probability and severity of accidents. And of course, they are capped.
” Employers have faced increasing and unpredictable healthcare costs for years, comments Andy Conrad, CEO of Verily, in a press release. Coefficient aims to reduce unknowns in this area and provide better tools to control costs for self-funded employees. “.
Maths and big data at the service of insurance
The objective is therefore: optimization. Coefficient claims that its ” analytics-based pricing engine “Will help employers better understand the risks they take. The very young company will rely on the one hand on the technologies developed by Verily, and on the other hand, will rely on the experience, the support and the network of Swiss Re in the insurance industry.
Full box for Verily?
Currently, as reported The Verge, it’s hard to know how Verily is making money when her goals are high. Alphabet does not generally report the finances of the company. But the category ” Other Bets “ Alphabet, of which Verily is a member, experienced an operating loss of $ 1.1 billion in the last quarter. In this context, Coefficient could become Verily’s financial windfall – since its history in technology, combined with its experience in care, the solution has everything to please insurers.
The market is as well established as it is juicy in the United States. Many insurance companies offer rewards to their customers for achieving goals set by their connected objects – in exchange for sharing their data. These data are valuable: they make it possible to gauge whether insurers are paying too much to cover a person. Coefficient could help insurance companies refine customer targeting and calibrate their insurance.
And if you think about the possibilities offered by the vastness of the data held by Alphabet as a whole, it makes you dizzy. For example, Google has just bought Fitbit, leader in the connected watch market, which collects countless sensitive personal data …