Case Study: Insurance Company
Challenge: How does one of the nation's largest health insurers take advantage of the potentially-revolutionary effect of Health Savings Accounts (HSA's) on their business?
Action: Developed a specialty bank to hold and market HSA's, thereby hedging the risk that HSA's may replace health insurance as the main funding vehicle for health-care expenses in the US. This specialty bank would offer savings accounts, debit cards for use at providers, and investment accounts offering a variety of mutual funds, all in a different configuration than ever seen before by regulators. Developed a business model and identified technology platforms to get the bank up and running as quickly as possible because competitors where also moving quickly in this space.
Result: A specialty bank that utilized a merchant-banking platform on the lines of a European assurance-banking model utilizing an Indian software company's bank & investment platform technology. The entire platform and product offering was approved by regulators, thousands of MSA accounts were converted to HSA's, and the insurance company began actively marketing the product nationwide.