KOGAN TO ENTER THE HEALTH INSURANCE MARKET
Written on the 12 December 2017 by David Simmons
ONLINE technology retailer Kogan.com (ASX: KGN) will start selling health insurance policies under a new brand name called Kogan Health.
In a deal with private health insurer Medibank Group (ASX: MPL) the online retailer will enter the budget health insurance market, which the group says is in line with the brand's reputation of affordable deals.
The deal is set out for an initial three-year period and will be administered via Medibank-owned Australian Health Management Group.
The e-commerce platform will handle the online branding and marketing sides of the business, but will earn commissions on sales of all insurance policies.
Medibank will provide an underwriting to raise investment capital from investors for the project.
The group's expansion into health insurance grows the already huge Kogan portfolio, which includes retail, insurance, mobile, and travel.
In June the company announced it would start selling fixed-line national broadband network home internet in 2018, after agreeing to expand its partnership with Vodafone.
Executive director of Kogan, David Shafer (pictured), says the partnership with Medibank will be warmly embraced by the company's growing number of members by offering better value health insurance.
"Having more than eight million Aussies as members of the Kogan community enables us to form strong commercial partnerships like this, which result in a win-win-win for Medibank, Kogan's shareholders and, most importantly, Kogan's customers," says Shafer.
The retailer expects to launch Kogan Health in the second half of FY18.
Shares in the e-commerce player are up by 0.21 per cent to $4.72 at 11am AEDT.
Business News Australia
Author: David Simmons