Beam Dental doubled membership and revenue from 2019 to 2021 and is poised to double enrollees in its benefits plans again this year, said co-founder and CEO Alex Frommeyer.
Despite the dizzying growth, the digital insurer's ratio of claims losses has remained remarkably consistent, thanks to its AI-driven pricing models, he told Columbus Business First.
"It’s very difficult to do – in a fast-growing business – to be able to manage risk as effectively as we've been able to," Frommeyer said. "Predictability is difficult for young companies like Beam to create, and we've been able to do that – and over an extended period."
Founded 10 years ago, Beam has had ups and downs and expanded service lines – but never pivoted, sticking to its core vision of remaking dental insurance through tech-enhanced preventative care.
It started with smart toothbrushes before rolling out the benefits plans. Data on brushing habits helps it assess risk for the underwriter and prompt better preventative care for the patient. Beam also sends members replacement toothbrush heads, paste and floss on a subscription model.
"We've always had a true north around the modernization and digitization of these markets that we care so much about," Frommeyer said.
Beam Dental, the DBA of Beam Technologies Inc., raised an $80 million venture capital round one year ago. Between that and revenue growth, Frommeyer said, the company is financially strong and progressing on its plan toward profitability while still pursuing rapid sales growth.
Plans are licensed in 43 states. The bulk of customers have fewer than 1,000 employees, although there are a few with as many as 2,000. Its model does not work with self-funded employer plans, Frommeyer said.
The tight labor market has led to even more interest, he said. "Employers are enhancing their benefit programs. The pandemic has forced them to think more expansively about that offering."
Beam is licensed as a third-party administrator for dental plans underwritten by Madison, Wisconsin-based National Guardian Life Insurance Co. It uses a similar model to offer vision coverage underwritten by VSP, and for Nationwide-backed life and disability benefits.
Columbus-based Nationwide's VC arm also was a participant in last year's funding round.
"That relationship continues to expand really rapidly – having them right up the street, and having a very cool Columbus story: This legendary super established business working with little ol’ Beam," Frommeyer said.
Beam added 50 jobs over the past year to top 300 employees, and is still hiring this year. Based in the Warehouse District north of downtown, it always has had a hybrid of in-office and online work.
"Even though we have more remote roles than ever, … the vast majority of our team remains in the Central Ohio area," Frommeyer said.
Frommeyer and two fellow engineers founded the company in Louisville in 2012; initial investor Drive Capital LLC moved it to Columbus two years later. The first policy was sold in California in 2016. Production of the brushes and other supplies is handled in northern Kentucky.
The three co-founders until now have guided product design and strategy for both Beam's hardware and software. The rapid growth led them to hire their first chief product officer: Deepinder Gulati started in December, working from New York City.
Gulati most recently was chief growth officer at Zocdoc, a digital healthcare marketplace. Before that, he was senior vice president of product and data science at Bankrate.com, a consumer financial services company that was acquired for $1.4 billion in 2017.
"We found a true expert and really seasoned technology and product executive," Frommeyer said. "That synchronization between healthcare and fintech – it looks a lot like Beam. ... That fresh perspective is always exciting to have."
