John McKimm of Smart Employee Benefits on the $81 Billion Employee Health Benefits Processing Industry
John McKimm, CEO, CIO, President and Director of Smart Employee Benefits Inc. (TSXV: SEB) (“SEB”) in an interview with InvestorIntel Senior Editor, Jeff Wareham discuss their software technology solutions for offices to process and track health benefits of its employees. The employee health benefits processing industry is over $81 billion this year alone and is a huge market opportunity for SEB. John states the sector grows 4-8% annually and explains how for every dollar spent, $0.10 goes towards processing costs. Citing many health benefit processes presently being utilized as “old and archaic”, John explains the competitive advantage of SEB’s technology which includes processing software with more automation, efficiency in fraud identification processing and better overall analytics for employers.
Jeff Wareham: Why should an investor want to own Smart Employee Benefits today?
John McKimm: Smart Employee Benefits has invested heavily in its technology solutions over the last 6½ years. We have got over $30 million invested and we have launched those solutions in the marketplace. A big chunk of our business is pretty stable; grows 10% to 15% a year. The big growth area for us is the back office processing for health benefits. That is a massive market opportunity. It grows 4-8% a year regardless of the economy and you have got over $0.10 of every dollar spent in that sector goes to pay for back office processing. That market this year is over $81 billion dollars, which is a huge processing revenue base to go after.
Jeff Wareham: What is the growth opportunity in that market?
John McKimm: In Canada there is somewhere over 25 million individuals that have health benefits. It is a huge market opportunity. It is a diverse market. That technology that is deployed in managing the back office environment is old, archaic. Our opportunity is technology that will provide a lot more automation, a lot more reporting fraud identification, better analytics for our client base, allow them to make better decisions on the billions of dollars that they are spending on health benefits…to access the complete interview, click here
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