Booster shot for health tech start-up from Facebook co-founder, EDBI

Ms Rosaline Chow Koo says CXA aims to shift the focus of health insurance from treatment to prevention.
Ms Rosaline Chow Koo says CXA aims to shift the focus of health insurance from treatment to prevention.PHOTO: CXA GROUP

Health tech start-up CXA Group has raised US$25 million (S$35.5 million) in a funding round led by Facebook co-founder Eduardo Saverin's B Capital Group and EDBI, the venture capital arm of the Economic Development Board.

Other investors include Philips, RGAx - a subsidiary of Reinsurance Group of America - as well as existing investors NSI Ventures and BioVeda Capital.

Singapore-based CXA aims to disrupt the insurance space with its platform, which allows employees to choose what they need in terms of insurance protection and treatment versus prevention and wellness, while helping companies control rising healthcare costs.

CXA uses health screening, lifestyle risks as well as sensor and claims data to predict future premiums, and pre-negotiates reduced future premiums from insurers for companies willing to help employees improve their health.

The group plans to use the new funds to expand beyond Singapore and Hong Kong into China, India, Indonesia, Japan, Malaysia, the Philippines, South Korea, Taiwan and Thailand.

Its regional expansion strategy includes scaling its platform for distribution to small- and medium-sized enterprises and individuals via banks and insurers, the company said in a statement.

"Our goal is to shift the focus of insurance from treatment to prevention, and to empower employees to take personal responsibility for their health," said CXA Group founder and chief executive Rosaline Chow Koo.

"Now that we've proven our brokerage and distribution models in Singapore, we're using the proceeds to scale our technology and operations to 10 countries in Asia," she added.

Before starting CXA, Ms Koo was the head of Asia Pacific at Mercer Marsh Benefits, an employee benefits brokerage and human resource benefits consultancy.

Mr Saverin will join CXA's board.

"CXA is an exciting addition to our portfolio. Its unique business model cuts across three out of four of our focus industries, including health and wellness, financial services and consumer services," said the billionaire venture capitalist, who is now based in Singapore.

A version of this article appeared in the print edition of The Straits Times on February 09, 2017, with the headline 'Booster shot for health tech start-up from Facebook co-founder, EDBI'. Print Edition | Subscribe