The SEB group of companies have very unique features. The Group Benefits division owns its complete technology environment for managing group benefits processes. This includes a fully integrated administration – adjudication – claims paying – reporting environment. Various modules can be used on a standalone basis or as a fully integrated system. The “holy grail” of this technology environment is the rules based adjudication platform. With over 1,000 preprogrammed rules objects, administrators, not programmers, can create an infinite number of very detailed and complex rules which can immediately be integrated into the adjudication engine.
Additionally, SEB is enhancing a very comprehensive fully integrated administration and reporting environment that will provide group benefit clients solutions and services not otherwise available in the marketplace today.
SEB’s root are in technology. Emphasis has been on adopting technology to client environments. While group benefit environments are a major focus of SEB, the technology is equally applicable in managing other health claims environments.
The total healthcare claims processing environment is in excess of $56.0 billion with $33.0 billion of premiums in Group Benefits and over $23.0 billion in other health claims.
SEB’s Client Acquisition Strategy is initially via acquisition, and then organic via transitioning of the Clients to the fully integrated SEB technology platform. The result is the capture of premium dollars that are currently being spent on multiple service providers, (including for administration, adjudication, claims paying and reporting) in one environment. The increase in revenue over a typical TPA environment, as a result of consolidation of services to one technology provider/platform, is between 300% and 700% depending on the client. Technology solutions in the market today are very fragmented and old technology. SEB is the only TPA offering a fully integrated technology solution in the marketplace.
Three groups are targeted for acquisition/investment:
- Third Party Administrators (TPAs) (Acquire 100%) – capture group benefit clients.
- Consultants/Brokers (minority Investments) – influence group benefit clients.
- Technology/Healthcare Service Providers (Acquire 100%) – provide access to corporate and government clients.
There are hundreds of TPAs in Canada, thousands of brokers/consultants and several hundred technology/healthcare service providers that fit into the SEB acquisition/investment business model.
A summary of the SEB Growth Strategy is as follows:
- Acquisition/Investments: make Acquisitions/Investments that result in “control of, or influence over where client service provider dollars are spent.”
- Organic: transition the above clients from “multiple service supplier environments” to “one supplier fully integrated environment”.
SEB is a technology based company which over time, expects to evolve into a financial services business with a technology backbone that will cause major structural changes in targeted segments of the Insurance business such as group benefits.