Canada health benefit
startup League enters insurance market
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[October 12, 2016]
TORONTO (Reuters) - Canadian health
benefit startup League Inc said on Wednesday it has teamed up with the
insurance arm of backer Royal Bank of Canada as it expands into
insurance, targeting the many small businesses offering no such benefits
to employees.
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The company received a license on Friday to operate as an insurance
broker in Ontario and expects to obtain similar licenses across
Canada in the next four to six weeks, Chief Executive Mike Serbinis
said. It plans to expand its insurance offering to some U.S. states
within three to six months.
League's move presents a challenge to larger insurers who typically
offer more rigid plans that are better suited to large
organizations.
The Toronto-based company currently sells software that helps
employers manage employee healthcare and lifestyle benefits for
their workers.
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League's life, accidental death, critical illness and other
insurance plans will be underwritten by RBC Insurance at launch,
with additional underwriters expected to join.
Serbinis said 70 percent of U.S. companies with fewer than 50
employees do not offer any health benefits, with a similar
percentage for Canadian companies with fewer than 100 workers.
"It's a huge market," he said, adding that League expects to collect
$1 billion in premiums or equivalent by the end of 2018.
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The company has 50 employees, and expects to double that by the end
of the year. It had 25 employees in June, when it raised $25
million, with RBC among the investors.
(Reporting by Alastair Sharp; editing by Diane Craft)
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