Aetna announces acquisition of Bswift, developer of exchange technology
Aetna, one of the largest insurers in the United States, has announced that it has reached a deal to acquire a privately held company responsible for developing technology used in health insurance exchanges. The company, called Bswift, creates cloud-based technology that helps people shop for coverage through state-based exchanges. This technology is meant to be used by employers and exchanges alike and is designed to be consumer friendly rather than have a specific focus on businesses.
Company’s technology used to help people shop for insurance coverage
Aetna claims that it is prepared to acquire Bswift for $400 million. The deal between the two companies is expected to be closed by the end of this year. Aetna has plans to use the company’s cloud-based technology to provide better services to its customers. Aetna has been looking for ways to be more consumer oriented in recent years, spurred by the changes introduced to the health care system by the Affordable Care Act.
Exchanges continue to grow in popularity, proving they are effective marketplaces
Insurance exchanges have become quite popular throughout the country. While many of these exchanges had experienced technical difficulties, they still proved to be very useful marketplaces for consumers. Aetna has been wary of the exchanges due to uncertainty as to whether or not they would be successful, but now the company sees promise in the business models of these exchanges. In the coming years, Aetna plans to adopt a more consumer friendly business model that will be akin to insurance exchanges.
New technology will help Aetna adopt a new retail business model
Insurers have been feeling more pressure to focus more on consumers recently. This is partly due to the changes introduced by the Affordable Care Act, but this pressure has also been building slowly over the past several years. Many consumers are demanding to deal with companies that are more than just faceless organizations. Some insurers, like Aetna, are taking steps to satisfy this demand by adopting new business models and engaging customers more aggressively than they had in the past.