A unit of
Willis Group Holdings
) - Willis North America has launched a private insurance
exchange, The Willis Advantage to enhance its health and welfare
The exchange aims at addressing the underlying costs of
healthcare. With the help of The Willis Advantage, organizations
will be able to design and execute private exchange solutions as
per the client requirements.
Concurrently, in order to achieve an organization's goals and
optimize its benefits, the Human Capital Practice consultants of
Willis in association with the clients will develop a multi-year
private exchange strategy. This strategy and the private exchange
offering is designed keeping in mind the exclusive requirements
of each employer.
The new exchange platform is beneficial in that it assists
employers to curb costs efficiently and predict future benefits.
Simultaneously, the employees are benefited through an access to
an extensive range of benefit options enhanced with clear
decision-support tools. This helps the employees to obtain a
proper knowledge about their choices and take responsibility for
The Willis Advantage is also beneficial in terms of health
outcomes as it encourages a healthy lifestyle and wellness among
its beneficiaries through its health management program.
By 2017, around 5%- 20% of mid-market firms are expected to opt
for private exchanges thus leading to a huge demand for private
exchange platforms. The firms would also require objective
consulting while assessing private exchange options. Moreover,
not much of the underlying healthcare costs have been addressed
by the existing private exchange solutions. The Willis Advantage
provides a comprehensive solution to all such problems.
In the first quarter of 2013, revenues in the North American
segment of Willis increased 4.6% year over year to $365 million,
thereby generating 35% of the total revenues in the quarter. We
expect the launch of the new exchange to increase the customer
base of the unit thereby enhancing revenues further.
In Jan 2013, Mercer, a subsidiary of another industry major,
Marsh & McLennan Companies Inc.
), launched a private benefits exchange platform, Mercer
Marketplace. The Mercer Marketplace helps employers to control
benefit costs and employees with a wide variety of choices,
flexibility and service.
Willis currently carries a Zacks Rank #3 (Hold). Among others
in the industry,
Validus Holdings Ltd.
) carries a Zacks Rank #1 (Strong Buy) whereas
Arthur J Gallagher & Co.
) carries a Zacks Rank #2 (Buy).
GALLAGHER ARTHU (AJG): Free Stock Analysis
MARSH &MCLENNAN (MMC): Free Stock Analysis
VALIDUS HOLDING (VR): Free Stock Analysis
WILLIS GP HLDGS (WSH): Free Stock Analysis
To read this article on Zacks.com click here.