Health insurtech firm, Alan, boasting a 700,000-strong customer base, maintains a startup growth pace. Alan’s aim is to be an all-encompassing, digital aid for your health.
The company announced some stellar financial statistics recently. Their top-line revenue for 2024 was an impressive €505 million (equivalent to approximately $525 million at the current exchange rate). Alan’s comparison to typical tech startups is complex as the insurtech operates in conjunction with national healthcare systems in multiple countries including France, Spain, and Belgium, and soon extending its reach to Canada.
Alan’s Business Model
“Breaking down our business model, we strive for an equilibrium between claims and premiums, with a membership fee ranging between 12% to 14%” says Alan’s co-founder and CEO, Jean-Charles Samuelian-Werve. Most of Alan’s revenue comes from insurance premiums, with Alan taking a slice of 12-14% for additional services and management fees.
Growth and Losses
Valued at a whopping $4.5 billion, Alan is still in the red, despite commendable growth. A net loss of €54 million was recorded in 2024, down from €59 million in 2023. “We remain on track to hit our goal of profitability by 2026” affirms CFO Mihaela Albu.
Despite not yet breaking even, Alan is witnessing encouraging success in its scalable distribution approach. The team expanded by just 8% in 2024, and the sales unit remained relatively stable.
Alan, Relying on AI to Grow
Artificial intelligence (AI) has been instrumental in driving sales growth, with improved efficiency in the sales process leading to around a 50% increase in results. “Through AI optimization, we’ve reduced customer service costs and accelerated code production,” notes Samuelian-Werve. In addition, AI has catalyzed marketing asset production, improving both quality and performance while decreasing costs.
Alan is looking to further leverage AI, planning for 40% of customer support queries to be auto-resolved by year-end. The firm also plans to grow total revenue by another 40% in 2025 compared to 2024, aiming to reach 1 million end customers by early 2026.
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