Boom Or Bust: How a French Health Insurance Unicorn Plans to Leverage AI to Reach Profitability

In this iPMI Global Insights article, iPMI report author and market analyst Ian Youngman, takes a look at Alan, the first digital health insurance company in France.

As of January 2024:

• Over 500,000 individual customers.
• 25,000 businesses/organisations covered.
• 50,000 people and 5000 organisations added in 2023.
• New French clients include Celio, Duracell, Mantu, and Clinitex, as well as the employees of France’s National Assembly.
• New Spanish clients include N26, Cabify and Eventbrite
• 550 employees.
• In 2023 the company reported €59 million losses.
• 2024 prediction of break even or smaller loss.
• 2024 revenue to grow by 40%.
• 2024 employee numbers to increase by 30.
• Plan to be in profit in France in 2025 and elsewhere in 2026.
• Based in France and also present in Belgium and Spain.
• EU wide expansion on hold.
• Alan is the first digital health insurance company in France, with the ambition to revolutionise health insurance by focusing heavily on improving user experience while providing an excellent price-quality ratio health plan.
• Alan is the healthcare super-app offering personalised access to information, proactive care, care delivery, payment and post-care.
• All forms of tracking, including quotes, invoices and reimbursement can be done on the app, making life easier and more convenient for the user.

Analysis

• The company has grown quickly but not as fast as hoped.
• Market expansion across Europe was planned but is on hold, probably until it has made a profit.
• Many health tech companies have opened and failed due to the way they burn through investor money.
• With its most recent €183 million Series E funding round the company reached a valuation of €2.7 billion.
• Despite never making a profit the company claims that it has investors knocking on the door.
• The French tech ecosystem has slowed with funding drying up and many companies seeking an exit.
• Artificial intelligence could be the company's saviour.
• But if profits are not made soon the magic money tree could die and the company fold.
• It has kicked the sluggish PMI market in France in places that hurt but PMI and IPMI companies are now catching up on tech, A! and how they operate.
• So, it may find it harder to expand across the EU than it thinks unless it brings in international expertise.
• At present it is not a threat to competitors in IPMI.
• Best guess- a big health insurer will buy it for the tech but at present the valuation is far to high- so they may wait for it to fail!

About the Author

Ian Youngman is an independent writer and researcher specialising in insurance. He writes regularly for a variety of magazines, newsletters, and on-line services. He publishes a range of market reports, and undertakes research for companies. To read his latest report, International Health Insurance 2023, please click here, or visit the REPORTS section of iPMI Global.