TORONTO Oct 12 Canadian health benefit startup
League Inc said on Wednesday it has teamed up with the insurance
arm of backer Royal Bank of Canada as it expands into
insurance, targeting the many small businesses offering no such
benefits to employees.
The company received a license on Friday to operate as an
insurance broker in Ontario and expects to obtain similar
licenses across Canada in the next four to six weeks, Chief
Executive Mike Serbinis said. It plans to expand its insurance
offering to some U.S. states within three to six months.
League's move presents a challenge to larger insurers who
typically offer more rigid plans that are better suited to large
The Toronto-based company currently sells software that
helps employers manage employee healthcare and lifestyle
benefits for their workers.
League's life, accidental death, critical illness and other
insurance plans will be underwritten by RBC Insurance at launch,
with additional underwriters expected to join.
Serbinis said 70 percent of U.S. companies with fewer than
50 employees do not offer any health benefits, with a similar
percentage for Canadian companies with fewer than 100 workers.
"It's a huge market," he said, adding that League expects to
collect $1 billion in premiums or equivalent by the end of 2018.
The company has 50 employees, and expects to double that by
the end of the year. It had 25 employees in June, when it raised
$25 million, with RBC among the investors.
(Reporting by Alastair Sharp; editing by Diane Craft)