Hello Transparency #2
Welcome to the second edition of Hello Transparency at alan!
We share all our figures because we strongly feel that transparency builds trust. And trust is one of our fundamental values at alan.
We have opened our doors, from our daily job — being your health partner — to how we spend our money and how many work hours we saved not doing meetings 🙌.
🤝 alan, your friend and partner in health
In the past 8 months, alan has grown from 10,000 to 30,000 insured people. We are very proud of this tremendous growth. And grateful to all people who contributed to it.
Here is the story of who our users are and where they come from.
As of May 6th, there were 30,947 people insured by alan, either on individual contracts or from one of the 2,446 different companies that have subscribed.
4 220 members (14%) of alan are individuals. 10 900 (36%) are employees of small companies (with less than 20 employees) and 15 027 (50%) of larger companies (with more than 20 employees).
One year earlier, there were 7,338 people using alan. That’s more than a fourfold increase of our user base!
“Syntec” companies account for 70% of our users insured under a company contract. Syntec is the technical French name to define a business segment that encompasses fields from digital to consulting practice. Most startups are under Syntec.
Most business segment in France are legally ruled by a so called “Convention collective nationale”, abbreviated to CCN. On the top of Syntec, 5% of companies in our portfolio don’t have a “CCN”, 4% are “prestataires de service du secteur tertiaire”.
Alan covers people across the whole country: all departments are represented. However, we’re deeply concentrated with 43% of our users living in Paris.
💶 Follow the money
Today, our business represents €25,5 million of premium collected per year. This is, roughly speaking, the contributions we would collect over the course of an entire year, if the number of users didn’t change.
The amount of premiums — ie. the sum of the monthly payments users pay — was €2,748 in 2016, €600,000 in 2017 and €4,900,000 in 2018.
11 is the number of companies that left us last year (we don’t include the mergers or liquidations), for a total of 50 people leaving. And yet, with alan, companies can leave whenever they want.
Each month, 0.4% of our users leave us; most of them changing companies or transitioning from freelance to employee.
⛰️Growth pains, radical challenge
This growth was a fundamental challenge to face and we underestimated its impact on our operations.
Despite the great commitment from all our care team, our answer time on our chat was degraded for a couple of weeks, and our median answer time skyrocketed to several hours 😱!
In hindsight, we should have anticipated this and continue to provide the highest level of service. It’s a crucial learning of this first quarter.
During the first week of March, our median time to answer reached 188 minutes 😱, versus 2.25 minutes the first week of January and back to a better 7 minutes on week 14 in April.
To reduce this way too long average time to answer, we re-allocated resources, and made crucial prioritization decisions.
Our care team — alaners who take care of our users — has also grown to 14 members. It’s 9 more members than in September 2018 when we shared our last transparency chronicle!
We forecasted traffic peaks to better allocate our resources. As a result, all alaners jumped in and did additional daily on-call shifts to support the care in answering your questions.
We also set up a bot during a month to warn our users of the load we were facing and therefore the delay they should expect.
Identifying recurring questions and pain points, we created and improved tools, we wrote articles to help our care team answer quicker, sharing blogposts, and we improved our product to make it clearer.
To avoid that situation from happening again in the longer term:
- We included reducing our contact rate in our company’s priorities; meaning we are constantly improving our product to let our users gather information without having to contact us;
- We started focusing heavily on hiring again;
- We set up engineering resources to improve the processes of our user care experts and help them become more efficient.
Of course, everything is far from perfect and we still have a lot on our plate to provide the service our users deserve.
💚 Taking good care of our users
As an insurance provider our number 1 mission is to reimburse our users for their health expenses.
In 2017, our loss ratio was 64%. It was 70% in 2018 and we target 80% for 2019.
In other words, for every €100 collected, we reimbursed an average of €64 in 2017, €70 in 2018 and we aim for €80 in 2019 in health expenses.
Over the past two years, you were in better health than we thought. That’s the reason why we lowered our prices for companies and increased our guarantees.
For people insured on our Green coverage, that represents 540€ of annual savings for both the company and the employee for a couple with children if the company average age is 40 years old.
For people insured on our Blue coverage, that represents 660€ of annual savings for both the company and the employee for a couple with children if the company average age is 40 years old.
The three most frequently reimbursed areas are pharmacy, general practitioners and specialists in terms of frequency ; glasses was the most reimbursed category by reimbursement amount.
🌿Subscribing to a better living
Alan is not an insurance against illness, but a subscription to a better living.
Since October 2018, 901 consultations have been given on Livi and 216 of you asked for meditation reimbursement.
And to know how much you will pay and be reimbursed before seeing a doctor we built alan map. It was used more than 64 000 times since June 24th 2018.
30% of our users subscribed to our Blue for employees offer, 56% are covered by Green for employees. 14% subscribed to our individuals offer.
On how we could have been even quicker 🏃♀️
We usually reimburse you in 7 days. It includes 2 days to receive the notification form the Sécurité Sociale and an average of 2 days between authorization and payment.
We took care of the paperwork for you sending 1387 cancellation letters on your behalf to your previous health insurance.
And we have connected with your Social Security 21.565 times to pay you back quickly.
Unfortunately, we failed to connect 28% of you (but we continued to try!). In many cases, the former insurer did not disconnect. That means you still needed to send us your health expenses to be reimbursed.
💸 Money, Money, Money
Most of our expenses go to the team’s salaries and the office. This makes up a total of around 75% of our annual expenses.
Our acquisition budget (ie. the money we spend to nurture our growth, expressed in percentage, as the law requires!) is 53% and our contract management fees are 33%.
These rates can seem impressive and very high. Again, you should keep in mind that our portfolio is just in its infancy and most of our spending are towards the salaries of our employees (we are hiring!).
We think it’s of the utmost importance to invest in the first few years in order to build a new insurance company that provides you with the best services :) In absolute terms, this represents €1.6M for acquisition costs and €0.9M for management in 2018.
On top of that, we don’t invest our money in exotic places or in complex and obscure financial investments. Everything is safely kept in a bank account that bears the colors of blue, white and red 🇫🇷.
🍀The alan way of life
As you know we don’t do meetings at alan.
We use Github issues to share and take decisions, 3000 of them have been opened so far! If each issue roughly replaces 2 hours of meeting with 5 people, we’ve saved over 30,000 hours of meetings 😅.
Our team has grown to 92 people 🥳.
10% of the team is mainly English speaking.
We made progress on gender balance 😅 as it has grown to 37% of female and non-binary as of today.
We proudly are welcoming 5 babies from alaners in the coming months! And more than 10 alaners are getting or got married in the last few months!
Here is a bar chart of our age distribution (in French).
🔮 Next episode
Thank you, those who are insured by us, the whole team and all who contribute daily, a little bit or a lot, to accomplish our mission.
If you have questions, or if there is data you think we should disclose, let’s talk on alan.com.