Introduction: A New Era for Canadian Health Insurance
In a landmark move, European health tech unicorn Alan is set to become the first new health insurance company to enter the Canadian market in nearly seven decades. Founded in 2016, Alan initially revolutionized the French health insurance landscape, marking the first new player in the industry there in 30 years. Now, the Paris-based startup is preparing for a similar breakthrough in Canada, where no new health insurance company has been established since 1957.
A Revolutionary Approach to Health Insurance
Alan’s approach to health insurance is unlike traditional models. Rather than operating as a typical insurance company, Alan has embraced the “software as a service” (SaaS) model. At its core, it’s a subscription-based service optimized through the use of technology, offering streamlined insurance solutions that integrate seamlessly with existing healthcare systems. This includes the development of its own claims management system and a mobile app for users to access a range of services.
The company’s flagship product is a health insurance policy that complements the French national healthcare system, which mandates that employers provide insurance for all employees. In addition to health insurance, Alan offers an array of supplementary services aimed at enhancing customer satisfaction, such as on-demand virtual consultations with doctors, ordering prescription glasses, and providing preventive healthcare content related to mental health and physical well-being.
Alan’s Growing European Footprint
In just eight years, Alan has gained substantial traction in Europe, operating not only in its home market of France but also expanding to Belgium and Spain. The company currently covers 675,000 people across these three countries, a significant figure given the near-universal health insurance coverage in these markets. Despite its progress, Alan remains a challenger brand, constantly innovating to win new deals and reduce customer churn.
Alan’s success in Europe is underscored by its robust financial backing. The company recently secured €173 million in a Series F funding round, bolstering its expansion plans. However, unlike other European startups that focus solely on their home continent, Alan is looking to chart a global course, with Canada as its next big destination.
Breaking into the Canadian Market: A Long-Term Vision
Alan’s decision to expand to Canada is a strategic one, influenced in part by its investor base. The Ontario Teachers’ Pension Plan Board’s venture arm, Teachers’ Venture Growth (TVG), led Alan’s Series E round, making Canada a natural next step. But the move is more than just about investor alignment. According to co-founder and CEO Jean-Charles Samuelian-Werve, Alan’s vision has always been global.
“I try to be very long-term oriented in the way we make our decisions at Alan. And when I picture Alan in 10 years from now, I don’t see us just as a European company. I see us as a global company,” Samuelian-Werve told TechCrunch in a recent interview.
Canada, with its blend of national healthcare and private insurance, presents a unique opportunity for Alan. The country’s healthcare system covers primary care, but supplementary services, amounting to around $60 billion annually, are handled by private insurers. Despite the market size, competition has been stagnant, with only 20 providers holding at least 1% of market share—a stark contrast to France’s 400 providers.
Canadian Expansion: Building a Local Presence
To officially enter the Canadian market, Alan obtained a federal Office of the Superintendent of Financial Institutions (OFSI) license, granting it permission to operate as an insurance company. While the regulatory frameworks in Europe and Canada are similar in terms of solvency, risk management, and distribution, Alan had to secure this new license to comply with local requirements.
With the license secured, Alan is building a Canadian board and a team of local experts in healthcare and insurance. The company has ambitious plans to hire 50 people in Canada over the next few years.
Mark Goad, Alan’s general manager for Canada, highlighted the challenges and opportunities within the Canadian market. “In Canada, there are only 20 [health insurance providers] that have at least 1% in market share. That number is 400 in France … It’s really, really uncompetitive [in Canada],” Goad noted. He also pointed to the stark difference in customer satisfaction, citing a net promoter score (NPS) of -8 for Canadian insurers compared to Alan’s impressive +70 NPS.
Launching in 2025: A Phased Rollout
Alan is not rushing its Canadian expansion but rather taking a measured, strategic approach. The company plans to begin onboarding Canadian customers in January 2025, with the goal of bringing on one new customer each week. Around 55 Canadian companies have already expressed interest in Alan’s services. By the second quarter of 2025, Alan aims to launch a self-signup portal to make its services more accessible to businesses.
The company will focus on distributing its products through employers, similar to its approach in France. By offering health insurance to entire workforces, Alan aims to establish a foothold in Canada’s insurance sector while maintaining its commitment to customer-centric innovation.
Conclusion: Alan’s Global Aspirations
Alan’s move into Canada marks a significant milestone for both the company and the Canadian health insurance industry. With its innovative approach, strong financial backing, and global ambitions, Alan is poised to disrupt the Canadian market much as it did in Europe. As the company continues to grow, its long-term vision of becoming a global health insurance provider is gradually taking shape, with Canada serving as the first major step beyond European borders.
