KOGAN TO ENTER THE HEALTH INSURANCE MARKET

KOGAN TO ENTER THE HEALTH INSURANCE MARKET

ONLINE technology retailer Kogan.com (ASX: KGN) will start selling health insurance policies under a new brand name called Kogan Health.

In a deal with private health insurer Medibank Group (ASX: MPL) the online retailer will enter the budget health insurance market, which the group says is in line with the brand's reputation of affordable deals.

The deal is set out for an initial three-year period and will be administered via Medibank-owned Australian Health Management Group.

The e-commerce platform will handle the online branding and marketing sides of the business, but will earn commissions on sales of all insurance policies.

Medibank will provide an underwriting to raise investment capital from investors for the project.

The group's expansion into health insurance grows the already huge Kogan portfolio, which includes retail, insurance, mobile, and travel.

In June the company announced it would start selling fixed-line national broadband network home internet in 2018, after agreeing to expand its partnership with Vodafone.

Executive director of Kogan, David Shafer (pictured), says the partnership with Medibank will be warmly embraced by the company's growing number of members by offering better value health insurance.

"Having more than eight million Aussies as members of the Kogan community enables us to form strong commercial partnerships like this, which result in a win-win-win for Medibank, Kogan's shareholders and, most importantly, Kogan's customers," says Shafer.

The retailer expects to launch Kogan Health in the second half of FY18.

Shares in the e-commerce player are up by 0.21 per cent to $4.72 at 11am AEDT.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

Incitec Pivot to split explosives, fertilisers businesses after record profits

Incitec Pivot to split explosives, fertilisers businesses after record profits

Following a record performance for the first half, Incitec Pivot (A...

John McGrath calls for calm as real estate company forecasts rise in earnings for FY22

John McGrath calls for calm as real estate company forecasts rise in earnings for FY22

Despite recent trading conditions proving disruptive for the reside...

Board exodus gathers pace at The Star after O’Neill resigns as chairman

Board exodus gathers pace at The Star after O’Neill resigns as chairman

The Star Entertainment Group (ASX: SGR) is now on the hunt for a ne...

Blackstone waits on gaming authorities as Crown shareholders approve $8.9b buyout

Blackstone waits on gaming authorities as Crown shareholders approve $8.9b buyout

Shareholders of Crown Resorts (ASX: CWN) have voted in favour of th...