ORLANDO — If benchmarks for success include a $130 million initial public offering, $100 million in revenue and a brand new equity partner who just forked over nearly $75 million in cash, then it's safe to say Benefitfocus has arrived.
On the heels of announcing its partnership with brokerage powerhouse Mercer, Benefitfocus launched right into its annual One Place event in Orlando and a slew of new product announcements. Its own take on the private exchange platform, the Benefitfocus Marketplace, was the obvious headliner.
"The Benefitfocus Marketplace is designed not just to be more intuitive, but to be more effective and enjoyable for both administrators and end users shopping for benefits," Benefitfocus President and CEO Shawn Jenkins explained during the keynote session Tuesday. "We're providing a flexible solution that streamlines business operations, and we're also providing for families by reimagining the way people look at their health, wealth and future in a way that empowers informed benefits decisions."
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But, most importantly for brokers, Jenkins reinforced his belief in brokers, pointing out that two-thirds of new federal exchange apps filed through Benefitfocus were done so with the help of a broker. In fact, 60,000 of his platform's registered users are brokers.
"We don't want to be a broker," Jenkins insisted. "We don't want to stonewall brokers."
Jenkins went on to emphasize that the mid-sized brokerage houses are the sweet spot for not only his company, but the industry as a whole.
Jenkins also staked his flag in the big data market, another in which the business overall has lagged behind other industries. He touted his company's ability to "compile health care data from multiple sources and translate it into actionable information that can help employers identify health care cost drivers and design plans that better meet the needs of their workforce."
Finally, Jenkins announced his company's answer to the App Store, dubbed —appropriately enough — the Benefitstore — which "gives employers and insurance carriers a whole new way to offer voluntary benefits with the help of a dedicated team. Benefitstore offers employers, insurance carriers and brokers a curated selection of voluntary insurance products, including critical illness, hospital indemnity, accident, legal, permanent life, pet, auto, home and more."
There are a lot of ben admin systems in the market, and most brokers dismiss the suggestion of critical differences between them, but it's worth remembering this is a company that processed almost as much in premium in the fourth quarter — $26.9 billion — as Amazon sold in the same period — $29.3 billion. The competitive advantages may be debatable — but the market presence isn't.
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