Venture-funded Connecture has acquired Insurix, a provider of sales automation software to health insurance carriers and brokers. Financial terms of the deal were not released. Connecture is a provider of integrated Web-based sales, service and process automation solutions to the health insurance industry. The company is backed by investors including Chrysalis Ventures, SSM Ventures, Live Oak Equity Partners, Total Technology Ventures and Encubate Technology Ventures.
Connecture, Inc. announced today that it has acquired Insurix, a technology provider of sales automation software to health insurance carriers and brokers. The combination further remodels health insurance distribution by creating the largest end-to-end sales automation provider in the market. By joining two of the leading companies in health insurance carrier and broker sales automation, Connecture has the broadest and most extensive reach of any technology company in the market.
With this acquisition, Connecture holds the health insurance distribution industry’s largest portfolio of clients as well as products, services, and end-to-end solutions, processing billions of dollars in premiums annually. Together, Connecture’s three product lines, InsureAdvantage, BrokerAdvantage, and StateAdvantage, change the way health insurance carriers and brokers, as well as governmental programs such as state health insurance exchanges, process the distribution of health insurance, easing the friction that exists today for consumers and groups when purchasing health insurance plans.
“Health insurance distribution is facing an enormous amount of change post-reform,” said Dan Maynard, President and CEO of Connecture. “The combination of Connecture’s leading-edge technology and services with Insurix’s client base and broker automation platform will transform this market and drive significant savings to an industry burdened with manual processes and inefficiencies. By serving more than half of all BlueCross BlueShield plans, 12 of the top 20 largest carriers, and many regional health insurance carriers across the country, Connecture’s automation platforms impact a significant portion of the health insurance market, change the industry dynamic, and take material cost out of the end-to-end transaction of the sale and service of health insurance plans.”
Connecture will continue to service and support Insurix clients and will include all carriers in Connecture’s client partnership benefits, including user group conferences, health reform forums, and product roadmap strategy sessions.
“Today marks the beginning of an exciting new opportunity for Connecture and Insurix clients,” explained Maynard. “This acquisition benefits our clients by expanding the cost-savings available through the scale of technology and by increasing Connecture’s funding in product research and development, thereby driving more features to our platforms. Our clients can realize significant administrative cost savings and provide their members with best-in-class consumer experiences through ease of shopping and comparison, enrollment, and consumer education.”
Aaron Downend, Chief Technology Officer with Insurix, will join the Connecture executive team as a Vice President of Technology. “This acquisition offers Insurix’s employees, carrier clients, and broker customers an exciting opportunity to be a part of one of the leading-edge companies in our industry. Together, we will continue to offer best-in-class technology solutions to our clients.”
Expanded broker product offerings
Connecture’s broker automation platform, BrokerAdvantage, will be enhanced by the addition of Benefit Central, the small group broker automation platform currently offered by Insurix. The combination of these platforms will enable Connecture to build a distribution model that allows brokers to sell more business, retain more business, and turn simple survival into a thriving business in this declining compensation market.
Connecture is solely focused on delivering integrated Web-based sales, service and process automation solutions to the health insurance industry. Its industry-proven solutions encompass the entire spectrum of multi-channel insurance sales and services for small group, large group and individual markets. Connecture offers an end-to-end business process transaction platform consisting of focused modular applications that fully integrate with existing systems. Connecture’s solutions have proven to deliver increased sales, enhanced broker loyalty, improved back-office efficiencies, lower customer acquisition costs, and decrease overall operating expenses.