UPDATED 13:16 EDT / AUGUST 23 2017

BIG DATA

Lumity’s employee benefits platform attracts $19M in funding

Lumity Inc. is using analytics to change how companies deliver employee benefits. Today, the three-year-old startup announced that it has raised $19 million from Draper Fisher Jurvetson, Social+Capital Partnership and True Ventures to take this data-driven approach mainstream.

Lumity offers a cloud-based platform designed to fill the knowledge gaps that normally make managing employee insurance plans a hassle. According to the startup, the service employs risk modeling algorithms to assess how a company’s workforce stands from a healthcare standpoint. Firms can use this information to negotiate rates with insurance providers that accurately reflect their requirements.

The data provided by Lumity is particularly useful for handling plan renewals, which usually involve a price hike. Companies can check the insurance provider’s proposed increase with the risk figures from the startup’s service to see if they’re getting a good deal.

To ease such negotiations, Lumity employs a consulting team focused on finding suitable insurance options. The startup claims that it helped one customer, venture-backed network monitoring provider ThousandEyes Inc., save 15 percent on group insurance by identifying a better health plan. Lumity can also assist companies with moving to a different provider when the need arises.

CareCloud Inc., another of the startup’s clients, reduced insurance costs by 23 percent this way. On top of cutting overall spending, Lumity said, aligning a company’s insurance plans more closely with its workforce risk profile also results in better coverage for employees. The startup’s packs includes a self-service portal that enables employees to choose among the plans offered by their company and track key expenses.

Lumity said it has seen revenues rise 800 percent over the past year thanks to strong demand. To fuel this momentum, the startup will invest the new capital in expanding its consulting team and back-office operations.

Lumity has received $34 million from investors to date.

Image: Lumity

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