By M. Marin

NASDAQ:HIT

READ THE FULL HIT RESEARCH REPORT

Simplifying & facilitating the insurance underwriting process…

Florida–headquartered Health in Tech (NASDAQ:HIT) is an insurance technology company operating an online marketplace platform designed to facilitate and improve the insurance underwriting process for healthcare insurance carriers, licensed brokers, third-party administrators (TPAs) and others. In turn, this is expected to make it easier for the clients they serve to obtain insurance plans that are appropriate for their organizations. The company’s target market is comprised primarily of small- to medium businesses (SMBs), which HIT believes is a segment that is underserved by the broader insurance industry. Moreover, the complexity of navigating the insurance process often drives up costs unnecessarily and makes it difficult for customers – particularly smaller businesses – to find policies that are appropriate for their needs and risk profiles.

HIT provides enterprise SaaS (Software-as-a-Service) solutions for online processing and sales of insurance and benefit plans. Its third party AI-backed technology is designed to simplify the underwriting process and make it more transparent so that customers can make informed decisions regarding what plans work best for their organizations. Licensed brokers registered on the platform can log in to review offerings and select policy plans, upload the required data to obtain a bindable quote on what the plan will cost and then sell the plan to small businesses. Generally, the primary target market of small- to medium businesses cannot afford to underwrite insurance independently.

…and completing underwritings in a fraction of the time…

HIT believes its target market segment is underserved, as noted. HIT’s target SMB (small- and medium-business) segment represents a sizable potential market opportunity. According to the SBA, small businesses with up to 500 employees comprised 99.9% of all U.S. businesses in 2022 and represented an estimated roughly 45% of U.S. GDP. Nevertheless, SMBs often have less access to affordable health insurance plans compared to those available to larger employers. Leveraging its AI-backed technology, HIT can shorten the time required to process underwritings to a fraction of the time compared to the legacy manual underwriting process. Bindable quotes for small employers with fewer than 150 employees can often be generated in about two minutes, compared to up to two weeks for the traditional underwriting process.

Self-funded benefits plans have traditionally been out of reach for small/medium businesses

Moreover, until relatively recently, self-funded benefits plans have generally been designed primarily for large corporations. HIT can also make it easier for smaller companies to obtain self-funded plans. The company offers SMBs tools to create and support self-funded benefits plans and believes its solutions can help smaller businesses avoid many of the challenges in order to access cost effective health care plans. Earlier this year, the company formed a partnership with MARPAI and Vitable DPC to offer competitive quotes in enhanced self-funded solutions, which HIT expects will facilitate its ability to offer competitively priced self-funded health plans.

Jan.-Feb. 2025 revenue up 50+% vs. same period of 2024

In 2024, the company realigned certain business operations, an action that temporarily interrupted underwriting activities. Going forward, HIT expects to continue to scale its business and intends to expand its distribution channels to target medium sized businesses. Following a recent business unit realignment, HIT expects to continue to scale its business and expand its distribution channels to target medium sized businesses, which represents a sizable potential market opportunity that HIT believes is under-served. In fact, at ~ $5.7m, Jan.-Feb. ‘25 revenue represents 50+% growth vs. the same period of 2024 & exceeds full quarter 1Q24 revenue.

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