Legend: Michael Neidorff
As CEO of the biggest provider of Medicaid in North America, Michael Neidorff, a Pennsylvania native, grew up in the historic city of Altoona and from the get-go, showed great academic promise and drive.
He earned his bachelor’s degree in political science at Trinity University and went on to study for a Master's degree in industrial relations at St Francis College the following year.
By the 1980s, Neidorff was fully immersed in the corporate world and healthcare. He secured a position as a human resource executive and the director of international consumer products at Miles Laboratories, one of the best-established treatment research centres of the eye and nervous system conditions in the US.
In the late eighties, Neidorff met his wife, Noemi, also an east coast native. The couple married and then moved to St Louis, where Neidorf started his first position in health insurance as president and chief executive officer of Physicians Health Plan of Greater St. Louis.
But it wasn’t until 1995 that he entered the upper echelons of health insurance as a business, becoming the Chief Executive of Group Health Plan and Vice President of its parent company, Coventry Corp.
Since then, the company has expanded with incredible speed and success. In 1996, Centene had just 40,000 covered members. Neidorff has led a huge expansion in the company and it now has over 12 million members across 28 states in the United States.
While he and his wife Noemi are ambassadors of St Louis and recently donated US$5mn to local health initiatives, Neidorff is not a controversy-free figure. In 2020, Neidorff was criticized for earning US$4.7mn in bonuses in addition to his total yearly earnings of US$24.96mn, while simultaneously laying off 3000 workers.
A fan of the coast and the good life, Neidorff also has an impressive portfolio of Palm Beach properties to his name.
Neidorff and his wife had two children, a son, and a daughter. Tragically, his daughter, Monica Lynne Neidorff, died in March this year aged 46.
CB Insights: US Insurtechs Are Competing In A Global Market
In the first half of the year, insurtech companies around the world have raised US$7.4bn, nearly doubling their funding in Q2. According to Digital Insurance, insurtechs have raised US$4.8bn in Q2—an 89% increase in funding from Q1. But US firms are no longer the sole beneficiaries.
What Are the Stats?
Out of the 15 Q2 mega-rounds—those that top US$100mn—only eight included American firms. Pretty good, you might say. That’s over half! But US companies only made up 38% of the deals, which marks a 10% drop from Q1 and a 12% drop from 2020. Technically, therefore, US insurtechs are less influential than they’ve been in the past. But who says this is a bad development?
Despite my American citizenship, I’d argue that a more globally diverse insurance market is only for the best. Many of the world’s citizens who could most benefit from improved insurance services live outside of the States—and deserve local, tech-savvy services.
Why Does This Matter?
You’re always going to see the typical insurtech contenders from Western countries. For instance:
- German-based wefox: US$650mn Series C
- UK-based Bought By Many: US$350mn Series D
- US-based Collective Health: US$280mn Series F
But it’s critical that we address risk across the world. American insurtechs might be some of the most technologically skilled firms in the industry, but it’s not their first goal to address floods in Southeast Asia, crop destruction in China, and COVID complications in South Africa. That’s why we should celebrate that the recent Q2 round included insurtechs from 35 different countries.
According to CB Insights’ Q2 2021 Quarterly InsurTech Briefing, this was the first time that they’d observed insurtech activity in Botswana, Mali, Romania, Saudi Arabia, and Turkey. And ‘from a product, service, distribution, and underlying risk perspective, we—as a society and as an industry—are moving at an unprecedented speed’, says Dr. Andrew Johnston, Global Head of Willis Re InsurTech.
Just ask CB Insights. InsurTech value propositions have resonated with the world.