A new HR platform is threatening the future of health advisors south of the border, but brokers in Canada can rest easy for now.
A new platform in the United States that has health advisors south of the border running scared isn’t on its way north.
Zenefits is a cloud-based HR platform that connects to existing third-party systems, helping small and mid-sized businesses outsource health insurance, among other services. The service eliminates the need for health advisors.
It’s taking the U.S. by storm, with one broker recently commenting to the San Jose Mercury that “every broker in the country is scared now of Zenefits.”
Luckily for Canadian advisors Zenefits doesn’t pose a threat, with a PR representative telling Life Health Professional, “as of now, no plans to launch in Canada.”
Zenefits, one of Silicon Valley’s hottest start-ups, believes the fees health advisors charge is unnecessary in today’s world.
The service is free for SMBs, with Zenefits instead charging insurance companies on a commission basis, exactly like a broker. Zenefits is itself a licensed insurance broker.
The company says insurance providers have no issues with Zenefits because the business sends them new clients. But advisors are facing an obvious threat as Zenefits steals their commissions.
After a year and a half, Zenefits has 2,000 paying clients and 450 employees. A June round of funding netted the company $66 million, with the young business valued at $500 million. This follows six months on the heels of its previous funding round, which investors called “the hottest deal in Silicon Valley.”
Zenefits is a cloud-based HR platform that connects to existing third-party systems, helping small and mid-sized businesses outsource health insurance, among other services. The service eliminates the need for health advisors.
It’s taking the U.S. by storm, with one broker recently commenting to the San Jose Mercury that “every broker in the country is scared now of Zenefits.”
Luckily for Canadian advisors Zenefits doesn’t pose a threat, with a PR representative telling Life Health Professional, “as of now, no plans to launch in Canada.”
Zenefits, one of Silicon Valley’s hottest start-ups, believes the fees health advisors charge is unnecessary in today’s world.
The service is free for SMBs, with Zenefits instead charging insurance companies on a commission basis, exactly like a broker. Zenefits is itself a licensed insurance broker.
The company says insurance providers have no issues with Zenefits because the business sends them new clients. But advisors are facing an obvious threat as Zenefits steals their commissions.
After a year and a half, Zenefits has 2,000 paying clients and 450 employees. A June round of funding netted the company $66 million, with the young business valued at $500 million. This follows six months on the heels of its previous funding round, which investors called “the hottest deal in Silicon Valley.”
