IoT-based dental insurer Beam plans expansion

Beam Dental began as a startup in 2012 selling a unique product: Bluetooth-connected toothbrushes that gather real-time data on brushing habits and provide feedback through a mobile app. It soon after began offering insurance, with policies underwritten by National Guardian Life, which incorporate dental hygiene behavior into policy pricing and lower loss ratios.

Today, Beam insurance is available in 16 states. But after raising an additional $22.5 million in May, the company plans to more than double that by the end of the year.

Alex Frommeyer, Beam Dental’s CEO, emphasizes that there is serious value underlying its brightly-colored toothbrushes, but admits the fun factor is important as well. “There’s definitely a fun element which is great from my perspective, since both digital health and insurance are spaces where most elements are deservedly very serious,” he says. “The ability to build something that has a value underlying it but a distinct and fun personality up front is really cool.”

Do you know an exemplary female leader at your insurance carrier, agency or brokerage? Consider clicking here to nominate her for DI's Women in Insurance Leadership award. Submissions are due by June 29.

Frommeyer says he was “astounded” to discover that over 100 million Americans lack access to affordable dental insurance. Beam, he explains, has sought to address the “broken” parts of the industry’s value chain by bringing technology and data into the mix. “I think the lack of creativity and education and user experience have all hurt the industry’s ability to grow,” he says.

di-dental-stock-061518.jpg
A patient waits at a dentists office in Kabul, Afghanistan, on Wednesday, Oct. 21, 2015. The World Trade Organization (WTO) has agreed to accepted Afghanistan's latest accession package, setting up terms for its bid to become the 164th WTO member. Photographer: Victor J. Blue /Bloomberg
Victor J. Blue/Bloomberg

However, thanks to wearable and connected products such as FitBit, connected scales and even Nest thermostats, consumers understand how tools they are using on their smartphone or computer can extend into other products. “In our case, our value proposition is clear,” he says. “You have been brushing your teeth your whole life but dental insurance doesn’t give you credit for it — you may take way better care of your teeth than guy up the street, but you have both been paying the same price for dental coverage.”

The company says it has more ideas coming down the pike: But first, the company plans to focus on expanding its array of plans and opening in more states.

“I think we have a lot up our sleeves, we are in the early innings of exploring what is possible and what should be done in terms of pricing, benefits and plan design,” says Frommeyer. “We have a long way to go before we can confidently say Beam plans are broadly available.”

For reprint and licensing requests for this article, click here.
Internet of things Dental insurance Customer experience Start-up funding
MORE FROM DIGITAL INSURANCE