[petesalty]

I was in a start-up in the health insurance industry (we just got acquired by a much larger company). While I agree there are some opportunities, mostly in the areas of information, what most people don't realize is that health insurance is highly regulated and hence a very expensive business to be in. It's not like you can just throw up some web site and start selling insurance. It's much more complicated than that.

[samd]

I think most people realize that the medical industry is highly regulated and that's why they overlook the opportunities there.

[krschultz]

That is a great reason to be in the game. Higher barriers to entry behind you are often a good thing.

Plus it seems like we've been seeing a growing trend of posts saying "Web companies are so cheap to start that VC investment isn't necessary". The VCs need somewhere to invest that actually uses the money.

[raheemm]

I think the opportunity lies in helping large health insurance companies becoming more consumer oriented. With the health reforms, these companies have a pool of 30 million customers - most of whom will be buying health insurance directly (instead of via an employer). So health insurance companies now have to figure out how to serve this customer base.