Data-driven insurance brokerage CXA Group has a grand plan. The firm wants to make Asia healthier by pairing the region’s workers with better health and wellness options. Judging by the company’s recent fundraising success, it might be able to gather the resources needed to realize its ambition.
The Singapore-based CXA was founded in 2013 by former Mercer executive Rosaline Chow Koo. The Los Angeles-raised CEO started her firm by betting $5 million of her own money that Asia was an underdeveloped market. Within a few years, CXA raised $33 million in series B funding. On March 12, the organization announced it secured an additional $25 million in Series C investments.
The corporation’s success is due to its unconventional data-driven approach to health insurance. Most healthcare brokerages try to sell firms on flex and wellness packages based on factors like cost. CXA takes a different approach.
Better Living through Analytics
The Singaporean firm sells clients insurance plans that allow workers to pick their own benefits. Once a partnership is made, CXA performs an in-depth analysis of its clients’ workers. The company gathers data on employee work-life balance, health history, and other relevant factors. Then, it crunches that information to provide staffers with the wellness options that will ensure their best personal health outcomes.
Thus far, CXA’s analytics approach to the insurance brokerage sector has paid major dividends. The company’s acquired $50 million from investors and its last valuation pegged it as a $100 million operation. Moreover, the firm now has more than 600 client companies and serves more than 400,000 people.
The Insight that Started it all
Like many innovative startups, CAX was born out of a single insight. Koo read an Emory University study that revealed a startling fact. Researchers found chronic disease affects people living in Asia at rates higher than the rest of the world. The executive took the study’s conclusions to mean preventive care was not a priority in the region.
From that insight, Koo began selling companies operating in China, Hong Kong, and Southeast Asia on data-driven wellness solutions. Her belief is that offering benefits buffet style is not only healthier, but it is also more affordable. Plus, the organization’s customers get to reap the benefits of having healthier, happier workforces.
CXA announced that it plans to use its $25 million cash infusion to further expand its operation into the South Pacific. Now that the startup has formed strategic partnerships with HSBC, its future seems assured. Moreover, Koo noted that expansion into North America and Europe are on the firm’s roadmap, so expect to hear more about this innovative company in the near future.
The Increasingly Competitive Healthcare Tech Market
Because CXA has a solid business plan and smart leadership, the company should do very well in the coming years. However, it’s worth noting that the healthcare tech space is becoming increasingly crowded.
Recently, a firm called Forward has found success by disrupting the U.S. health insurance market with preventative care solutions. Additionally, a Finnish company called Aiforia is harnessing the power of deep learning to speed up medical analysis. Moreover, Amazon and Microsoft have invested billions in developing artificial intelligence programs that can optimize patient care.
At the beginning of this century, a few tech companies changed the way the world consumes music. In this decade, one automotive company upended decades of conventional wisdom to make bestselling electric cars viable. In the next few years, startups like CXA might bring similar revolutionary innovation to medicine.