Canadian health benefit start-up League Inc. announced today that it has collaborated with the insurance division of Royal Bank of Canada to provide insurance to small businesses. Notably, RBC is one of League’s investors.
League was issued a license Friday to operate as an insurance broker in Ontario. CEO Mike Serbinis said that the company expects to secure similar licenses across other provinces in the next four to six weeks. League also has plans to expand its insurance offering to the US in three to six months.
Serbinis noted that 70% of US companies with less than 50 employees do not offer any health benefits. He also said that the same percentage of Canadian companies with less than 100 employees lack health benefits.
“It’s a huge market,” Serbinis told Reuters
. He added that the company expects to collect about $1 billion in premiums by the end of 2018.
The company currently sells software that aids employers in managing employee healthcare and lifestyle benefits.
RBC Insurance will underwrite life, accidental death, critical illness and other similar insurance plans for League. Other underwriters are expected to join.
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