Niche Health Insurance Company Files for IPO–Uses Cloud Based Platform for Algorithmic Consumer Shopping, Underwritten by
Posted Dec 28 2012 12:40pm
My first thoughts here are to look at the underwriters, Citi and BofA Merrill Lynch? The company plans to go on Nasdaq so we have banks here with algorithms and software getting into the health insurance business? It appears there’s a client base with the numbers quoted.
In looking at the website this appears to be a pitch to sell additional health insurance to cover where normal policies leave off, in other words a supplemental type of policy to cover specific items to where high deductibles and other provisions in policies do not cover. In addition there are partners who offer additional services such as Lenscrafters, GymAmerica, Hewlett-Packard computer and digital equipment, and even floral discounts. In addition I see prescription card benefits and visions discounts sold here. Of course I think right off how much data is being created for sale here as that’s what happens out there today. Basically this is an algorithmically operating site that searches out pricing and services and presents them to a client in a format for purchase and the fact that it is in the cloud doesn’t mean much other than the fact that it can use APIs to find their data. An IPO for some cloud algorithms to assist consumers for searching for supplemental insurance and non insurance items? I guess time will tell on this one to see where the value lies. BD
Health Insurance Innovations (HII), which operates a cloud-based platform for health insurance, has filed for an IPO to raise up to $86 million.
HII focuses on the sale of 12-month, short-term insurance plans, which are often half the cost of alternative major medical policies. A key advantage is HII’s core technology system, which analyzes large amounts of consumer data and purchasing habits.
The two key drivers include the likely drop of group coverage from many employers as well as the surge in uninsured Americans entering the insurance market. In other words, demand will inevitably be substantial for low-cost offerings from companies like HII.