To strengthen its operating platform, Digital Benefit Advisors intends to introduce a private exchange, Digital Benefits Marketplace. Digital Benefit Advisors is an operating unit of Digital Insurance. The latter is a wholly owned subsidiary of Fidelity National Financial Inc. (FNF).
The launch targets large and small enterprises and employers and aims to assist these with services to curb rising costs through defined contribution and customer involvement. This marketplace aspires to emerge as a true online entity which would provide a wide range of benefits and superior customer service to its clients.
The Digital Marketplace will be launched in the coming months in a number of states across the country. The services that will be provided by this private marketplace include health, life, disability, accident, critical illness, long-term care, dental and vision insurance, along with other products and services.
But apart from all these services, the highlight of this marketplace that makes Digital stand out in the industry, is the provision for a call center with licensed customer advocates responsible to guide individuals through the selection process
With its existing infrastructure, operational capability and distribution system, the company is quite capable of launching and administering private marketplaces in various states for all sizes of enterprises, particularly for the middle market and small employers. To launch the aforesaid private marketplace, Digital is in consultation with health insurance carriers and ancillary and voluntary product providers in various states.
Digital had been acquired by Fidelity in the fourth quarter of 2012. We expect Digital’s success and strong organic growth prospect to bolster Fidelity National’s growth portfolio in future. At present, with the launch of the private marketplace and its superior services, we expect Digital to reach out to a large number of clients and thereby enhance company revenues.
Fidelity carries a Zacks Rank #2 (Buy). Among others, Montpelier Re Holdings Limited (MRH), Platinum Underwriters Holdings Ltd. (PTP) and Homeowners Choice Inc. (HCI) carry a favorable Zacks Rank #1 (Strong Buy) and are worth noting.
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