Digital Insurance take Equity Stake in GoCo
November 17, 2015
Digital Insurance, the United State’s largest employee benefits only firm has just taken a step to make itself that much larger by purchasing what is being called a significant equity stake in GoCo. For those unfamiliar, GoCo is a firm that develops human capital management platforms and solutions for small and mid-sized businesses. The two companies say the partnership creates what they believe is a significant a market advantage against competitors such as Zenefits. This is because the GoCo.io platform can now be teamed with Digital Insurance’s brokerage network in order to give advice at an expert level when it comes to a firm’s employee benefits package.
“Without a strong advisory system, solutions offering software to clients in exchange for becoming the broker-of-record are off balance. Employers and their employees need access to experienced advisors to help navigate the healthcare system and maintain compliance. Our solution provides the missing link. GoCo.io focuses on technology; Digital delivers advisory expertise; and the union is the most responsible way to provide service to clients. ” GoCo.io CEO Nir Leibovich said in comments about the partnership.
Digital has said it plans to lean on its Atlanta area service center in order to roll out the new platform that is being developed with GoCo. While the official rollout might take some time, as clients take a look at the new technology, Digital believes that most of it’s 30,000 client companies will eventually accept and start to work with this platform in the next few years.
One of the reasons both GoCo and Digital believe their clients will be accepting this technology sooner rather than later is that the platform allows for super-fast management of features such as employee benefits, onboarding, off-boarding, payroll, and various other human capital management activities through one central hub.
So often we hear about the impact of automation in the insurance industry being customer focused. However, as this announcement shows internal customers can literally and figuratively benefit as well.
Edited by Peter Bernstein