A team led by Veer Gidwaney, the former chief executive officer of Maxwell Health, is starting a company that will offer a new type of three-tier indemnity health insurance product.
The company, Clara Insurance Inc., says managers of Clara, its new group supplemental health benefit plan, will classify about 13,000 health conditions as moderate, severe or catastrophic.
Employees can decide how rich they want the overall level of benefits to be.
The Clara plan will pay up to $750 in cash benefits to an enrollee who needs emergency room care or urgent care for a moderate condition, such as a broken arm or pneumonia; up to $3,000 in benefits for a severe conditions, such as appendicitis, or a torn meniscus; and up to $15,000 in benefits for a catastrophic condition, such as a stroke.
The payments are based on whether an enrollee has a triggering condition, not the enrollee’s medical bills. Enrollees can use the benefits payments however they want to use the payments.
Clara talked about the plan today, when it announced that it has raised $5.5 million in “seed financing,” or early-stage financing. Two Sigma Ventures has provided the most financing. The investor group also includes Reinsurance Group of America Inc.’s RGAX LLC.
Clara organizers say in the financing announcement that Clara will be a “modern supplemental benefit, powered by smart technology.”
The company says it will start selling the plan in Texas this summer.
Clara is incorporated in Delaware and has an office in Hoboken, New Jersey.
The insurance powering the company’s plan comes from Greenhouse Insurance, a subsidiary of RGA.
Gidwaney is one of the Clara executives listed on the Form D financing forms Clara has filed with the U.S. Securities and Exchange Commission. The other executive named on the forms is Amanda Turcotte.
Gidwaney started his own information technology support company in the Calgary area in 1999, then sold it to Computer Associates in 2006. In 2009, he left to help run Humanity Calls, a fundraising tournament website.
In 2010, he co-founded Maxwell Health, a benefits enrollment system company. Sun Life Financial Inc. bought Maxwell Health in 2019.
Gidwaney began organizing Clara in June 2019.
Turcotte, the company’s chief insurance officer, is a fellow of the Society of Actuaries. She started out working as an actuarial assistant at the Guardian Life Insurance Company of America.
Turcotte later spent about seven years working as an actuary at AXA U.S. When she left AXA U.S., in 2016, she was the chief actuary and head of underwriting at the company’s employee benefits unit.
For the next three years, Turcotte was chief product officer at a New York-based managing general agency now known as Resilient. Resilient sells insurance products designed for middle-market and low-income people, such as cab drivers, through mobile devices.
Turcotte has been working for Clara since November.
Clara says in the financing forms that it raised $4.5 million from 14 investors in December, and $1 million from five investors starting in March.
The company notes in the financing forms that it was originally named Nightingale Insurance Inc.
The Texas Department of Insurance filing website shows that Greenhouse Insurance is classifying the Clara product as a form of critical illness insurance.
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