Alan: The Health Insurance Startup Defying Expectations with Rapid Growth and AI Innovation

Alan, with 700,000 customers, is rapidly evolving from a startup to a significant player in the health insurance market. In 2024, the company reported an impressive €505 million (approximately $525 million) in revenue.

Despite its growth, comparing Alan to typical tech startups is challenging since it operates as an insurance provider, complementing national healthcare systems in France, Spain, Belgium, and soon Canada. Co-founder and CEO Jean-Charles Samuelian-Werve stated that their business model focuses on achieving a breakeven claims-to-premiums ratio, maintaining a membership fee of 12% to 14%.

When viewed through a software-as-a-service lens, Alan's annual recurring revenue would range between €60 million to €70 million (around $62 million to $73 million). However, despite its valuation of $4.5 billion, Alan reported a net loss of €54 million in 2024, slightly better than the €59 million loss in 2023. The company aims for profitability by 2026, as confirmed by CFO Mihaela Albu.

Alan’s operational efficiency is improving, with only an 8% growth in its workforce in 2024. Key partnerships, such as winning tenders in France for government workers and collaborating with Belfus in Belgium, are enhancing its market position.

Disrupting the Health Insurance Market with AI

AI plays a pivotal role in Alan’s strategy, with sales team performance increasing by 50% due to AI implementation. Samuelian-Werve noted that AI has helped reduce customer service costs and enhance product development efficiency.

Looking ahead, Alan targets a 40% revenue increase in 2025, aiming to reach 1 million customers by early 2026. The company also plans to automate 40% of customer support requests by year-end. Recently, Alan expanded its offerings to include health insurance for retirees in France, targeting a growing market of 750,000 new retirees annually.