Two private equity-backed companies hope to use their capital to create a high-tech Medicare supplement (Medigap) insurance program.
AmeriLife Group has launched the new Prosperity Medigap program together with Prosperity Life Group.
A Clearwater, Florida-based distributor with backing from Thomas H. Lee Partners, AmeriLife has relationships with 35 marketing organizations and about 200,000 insurance agents, brokers and advisors.
New York-based insurance company Prosperity Life is part of the Elliott Management Corp. portfolio.
Prosperity is writing the new Medigap policies through its SBLI USA Life Insurance Company and S.USA Life Insurance Company subsidiaries.
Product Details
Federal law requires Medigap issuers to base the policies on standard product templates identified by letters. The companies say the Medigap program will include Plan F, Plan G and Plan N policies.
The companies say they also will offer a technologically advanced electronic application process.
The E-application process includes electronic and voice signature tools, a system for underwriting the applicant while the applicant is with the agent or broker and a system for Prosperity to make decisions about the applications while the applicants are still with the producer.
Scotty Elliott, an executive at AmeriLife, said in a statement that he believes the high-tech approach will set the program apart from the competition.
