French startup Alan currently insures more than 200,000 people with its own health insurance contracts. The company is expanding its business in two different ways: it wants to offer more services to turn its insurance app into a health super app, and it announced today that it plans to sell its infrastructure and tech stack to other insurance companies.
With this new activity called Alan-as-a-service, Alan provides essentially all the services you need to have health insurance in France – except other insurance companies that create insurance products.
The best way to describe how it works is to talk about the first Alan-as-a-service customer. Lamie mutuelle is working with Alan and will be using Alan’s services in the future.
It’s a health insurance company that covers 85,000 people, which means it doesn’t have a large technical team in-house. After the switch to Alan-as-a-service, existing Lamie customers do not need to sign a new contract. Lamie is still responsible for pricing its insurance products and selling them to businesses and individuals.
“They use our mobile app. It is Alan’s main mobile app, the one available on the App Store. The only difference is a Lamie splash guard that their members will see,” co-founder and CEO Jean-Charles Samuelian-Werve told me.
If you pay at the doctor, Alan is responsible for comparing what you paid with the coverage you get from your Lamie contract. And Lamie members should notice a real improvement as Alan has fine-tuned this process quite drastically.
In France, private health insurance schemes are connected to the card of the national health system. When you hand your card over to the doctor, Alan will be notified of a payment within seconds. That’s why Alan has automated this process as much as possible. In most cases (two thirds), members receive the refund in their bank account within an hour. The national health care system also pays a part, but that usually comes a few days later.
Companies that have signed up for health insurance with Lamie can also access the Alan backend website to manage employees, invite them to create an account, or delete them when they leave the company.
The three stakeholders get different things from Alan-as-a-service. People who have Lamie insurance product will get better user experience and access to other Alan services. Lamie has delegated IT issues to Alan. And Alan gets 85,000 users overnight.
Alan may not generate the same margins from outside members as compared to his own members. But that should certainly help when it comes to growth in the health insurance market, which remains highly fragmented.