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Tech giants are ramping up their investments in digital health initiatives, signaling some significant moves to target the health insurance space.Google, Facebook, Apple and Amazon have invested heavily in personal health monitoring devices and virtual care and have been able to integrate these capabilities into health insurance offerings relatively easily, according to an analysis from CB Insights.
As one example, Google’s subsidiary Verily recently formed its own insurance company to provide tech-driven employer health insurance plans.
According to the report, recent investments and partnerships show the companies are targeting the overall $6 trillion insurance industry, including life and property and casualty insurance spaces.
Big tech companies have several advantages over traditional insurers: They have the data, existing customer base and distribution platforms to successfully reach insurance buyers in a more convenient and digital manner, according to the report.
“Today, big tech companies act primarily as digital enablers or distribution partners for insurers. However, if they own the data (via their hardware), analytics (via their cloud software), and distribution (via their consumer platforms), insurers are at risk of being commoditized or disintermediated,” the report said.
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