Massachusetts Mutual Life Insurance (MassMutual) announced it will reintegrate its Haven Technologies unit back into the main company, effective at the beginning of 2025.
The move will result in the elimination of 65 positions out of the 123 jobs at Haven Technologies' New York headquarters, as noted in a Worker Adjustment and Retraining Notification (WARN) filing with the New York Department of Labor.
As per a report by AM Best, Haven Technologies was originally launched to offer MassMutual’s proprietary technology to other insurers, operating as a standalone software-as-a-service (SaaS) business. However, MassMutual stated in an email that the market conditions and economic viability for this model did not meet expectations.
“Haven Technologies was established to offer MassMutual’s proprietary technology to other carriers for their use," the company said. "Over time, it has become clear that the market for and economic structure of this standalone software as a service (SaaS) business isn’t viable. Given these learnings, Haven Technologies will integrate into MassMutual at the beginning of 2025, allowing even more focus on the technology elements that support MassMutual’s strategy."
The decision follows MassMutual's earlier restructuring steps. In 2021, MassMutual spun off Haven Technologies with the goal of selling the technology that supported its Haven Life unit, which specialized in online direct-to-consumer term life insurance policies.
However, facing low consumer demand, MassMutual announced last year that it planned to wind down Haven Life, shifting its focus back to integrating life insurance products directly through the MassMutual website.
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MassMutual noted that all policies sold through Haven Life remain MassMutual products and will continue to be serviced and administered by the company. The move to consolidate operations is intended to streamline consumer access to life insurance products, aiming to meet customer needs more effectively.
Haven Life and the broader direct-to-consumer life insurance sector have faced significant challenges, including high customer acquisition costs and limited consumer adoption.
MassMutual highlighted these issues in its statement, noting that the integration of Haven Technologies would allow it to prioritize strategic technological development within its core business.
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