National General Holdings Corp. is making another health insurance market deal.
The New York-based specialty personal lines company announced Tuesday that it will acquire the Quotit Corp. and HealthCompare services from Orange, California-based Word & Brown Companies.
The companies did not disclose the price.
Quotit offers a system that insurance agents and brokers can use to provide quotes for clients through the web.
HealthCompare operates a product comparison website that generates sales leads for agents in many different health-related insurance markets, including the traditional individual major medical market, the Medicare plan market, and the markets for supplemental products, such as dental insurance, vision insurance, accident insurance and critical illness insurance. The company also generates life insurance leads.
National General, which was founded in 1939, is the same company that agreed to buy the small-group benefits operations from New York-based Assurant Inc. in June 2015. National General told securities analysts when it released its earnings for the third quarter of 2016 that it believes the accident and health insurance segment “presents a significant opportunity.”
The implementation of the Affordable Care Act should create substantial demand for supplemental products, the company said.
National General started entering the health market in February 2012, by acquiring VelaPoint, a general agency call center that sells major medical products and supplemental health products. Company executives emphasized that the HealthCompare deal will give their agents access to Medicare plans.
John Word III, the co-founder of Word & Brown, said in a statement that his company has had a long-standing relationship with National General.
“Their willingness to invest in the long-term success of HealthCompare and Quotit in a post-ACA environment solidified the deal,” Word said.
Rusty Brown, the other co-founder, said: “We believe this is the right move for everyone.”
Word & Brown helped create one of the first stable health insurance purchasing groups for small employers.
The company is keeping its general agency, CHOICE Administrators, California Rx Card and Nevada Drug Card units.
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