BenefitPoint, Inc. today announced that it has
launched its e-commerce platform that enables
insurance brokers to better manage the
marketing, sales, and servicing of group
benefits, including medical, dental, vision,
life, and disability.
BenefitPoint already has tremendous
support from the nation's leading insurance
brokerage and consulting firms with over 40
strategic broker customers.
The company
also announced that it has attracted $12
million in series A financing from Sequoia
Capital, Institutional Venture Partners (IVP),
and over 20 broker investors across the
country including:
- Arthur J. Gallagher & Co. (NYSE:
AJG)
- ABD Insurance & Financial Services
- Palmer & Cay Consulting Group, Inc.
- Summit Global Partners, Inc.
- Kaye Group, Inc. (NASDAQ: KAYE)
- Trion Group, LLC
- Keenan & Associates
"The
employee benefits insurance industry is
approaching $1 trillion and is shackled by a
highly inefficient distribution system and is
controlled by a deep network of benefits
brokers and consultants," said Sam
Collela, general partner IVP and board member
of BenefitPoint.
"A clear opportunity exists to
solve insurance distribution challenges by
providing a platform that supports the
existing broker distribution channel.
BenefitPoint is delivering this
solution today? premier outsourced platform
built "by brokers, for brokers" that
leverages relationships, expertise, and
technology in order to drive efficiency."
Jim Durkin,
president of Gallagher Benefit Services, the
employee benefit operation of Arthur J.
Gallagher & Co., commented, "With
BenefitPoint, we're getting something that
previously was not available, namely a
sophisticated industry infrastructure that was
developed with a real understanding of
day-to-day product distribution and customer
service issues. Because we can communicate and transact business more
efficiently with employers, carriers, and
third-party vendors, we can provide more
effective customer service.
Ultimately, BenefitPoint will enable us
to increase revenues, lower costs, and improve
customer satisfaction and retention."
The existing
e-commerce insurance solutions focus on
commodity insurance products or segments of
the industry such as the small group market,
employee communications, or benefits
administration.
BenefitPoint is an end-to-end,
business-to-business solution enabling brokers
to maximize the operating and strategic
advances of e-commerce.
According to
Brian Bair, BenefitPoint co-founder, "Our
platform gives brokers and consultants control
over critical customer data throughout the
entire lifecycle of group insurance products. We
are providing an infrastructure that will enable
the industry to achieve a new level of
efficiency and productivity.
By combining our industry experience,
unique relationships and our partnership with
Scient Corporation (NASDAQ: SCNT), the world's
leading systems innovator, BenefitPoint is
delivering 'the killer app' to the insurance
industry.?
Kurt
de Grosz, BenefitPoint co-founder, adds,
"Having been brokers ourselves, we
understand the value a broker brings to
employers and carriers.
Rather than trying to disintermediate the
broker, BenefitPoint is focused on empowering
brokers by bringing e-commerce efficiency to
their back office and enabling them to provide
enhanced consultative and administrative
service, which is the core value proposition of
brokers and consultants."
About the Investors
BenefitPoint's
investment partners represent broad experience in
insurance, health care, and technology development and
growth.
Sequoia Capital has more than $750
million under management and has financed over 350 early
stage technology companies with more than 100 of these
companies undergoing an IPO or acquisition.
Sequoia's successes include: Cisco Systems
(NASDAQ: CSCO), Yahoo! (NASDAQ: YHOO), E-Loan (NASDAQ:
EELN), eToys ((NASDAQ: ETYS), and WebVan (NASDAQ: WBVN).
IVP has more than $1 billion under
management and such successful investments in its
portfolio as: BayNetworks, Excite (NASDAQ: ATHM), Ask
Jeeves (NASDAQ: ASKJ), Tivo (NASDAQ: TIVO), Concur
Technologies, and LSI Logic.
Twenty-three large regional insurance
brokers throughout the United States, which have
embraced the BenefitPoint solution through strategic
investments in the company.
About BenefitPoint
BenefitPoint
provides a B2B e-commerce service platform for insurance
brokers, enabling them to manage the entire group health
insurance and benefits lifecycle.
Building on the existing industry relationships
among brokers, carriers, and employers, BenifitPoint's
solution combines the efficiency of the Internet with
the established distribution model of the insurance
industry to lower costs, improve customer service, and
increase sales. Releasing
its first product in December 1999, BenefitPoint has
widespread industry adoption by over 40 major insurance
brokerages. BenefitPoint
has received investment support from Sequoia Capital,
Institutional Venture Partners (IVP), and some of the
largest insurance brokerage firms in the United States.
The company, headquartered in San Francisco, CA,
can be reached at (415) 277-5600 or at www.benefitpoint.com.
BenefitPoint, Inc. is privately held.
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