ATLANTA--(BUSINESS WIRE)--The world of employee benefits for small- and mid-sized businesses (SMB) just took a great leap forward. In a move to integrate an innovative software platform for human capital management into its leading, tech-enabled national advisory firm, Digital Insurance recently bought an equity stake in Houston, Texas-based tech company GoCo.io. Digital is the nation's largest employee benefits-only company.
“This partnership breaks new ground in our industry,” says Digital CEO and President Adam Bruckman. “While HR software solutions have galvanized the SMB benefits landscape over the past year, we have questioned such advances because they lack advisory depth to help clients navigate a post-ACA world. And, until recently, comprehensive software solutions were designed only for large employers."
“Digital’s partnership with GoCo.io helps level the playing field for SMB employers struggling with administration issues and healthcare reform,” says Mike Sullivan, chief growth officer for Digital and GoCo.io board member. “No other entity has been able to offer the SMB market both human capital management software, along with a true consultative brokerage experience. With this significant investment, we now provide a comprehensive solution, creating a true disruptive force in our industry.”
Marketed under the name “Simplify,” the new software platform addresses comprehensive human capital management needs. As a result, employers require only one system to manage employee benefits, onboarding, off-boarding, payroll and other human capital management activities. With its tech-enabled operations and service center based in Atlanta, Digital plans to roll out this new service beginning in 2016 through its Digital Benefit Advisors (DBA) division, which has 30 offices across the country. The company expects many of its 30,000 clients to adopt this technology over the next several years.
In addition to creating a seamless connection between employers, employees, advisors and insurance carriers, GoCo.io has another mission in mind. “Our vision is to transform the employer-employee relationship with a compelling user experience,” says GoCo.io CEO Nir Leibovich. “People tend to characterize technology in terms of efficiencies; we think in terms of how it can elicit delight.
“GoCo.io is creating a solution that will foster brand allegiance,” he continues. “Because our platform reimagines the way employees interact with a company, our hope is to create a desire – and demand – for similar experiences with future employers. Simultaneously, businesses will discover our platform not only provides an operational advantage, but it is also a way to attract talent. We want our technology to transcend administrative value and become an asset to an employer’s culture.”
Leibovich and his team are a recent example of serial entrepreneurs entering the complex and disconnected benefits and human capital management space. After successful startup ventures in gaming analytics and human genome analysis, Leibovich rejoined partners Michael Gugel and Jason Wang to launch GoCo.io. Their research determined that the complexities of ACA legislation required insurance expertise that would be extremely difficult and time consuming to build. Leibovich’s motivation is also personal. In response to challenges he experienced with another HR software product, plus to a family member’s dilemma after choosing a plan without consulting an advisor, the GoCo.io CEO felt it would be irresponsible for his company to go to market with a solution that wasn’t completely integrated into an advisor network. As a result, he reached out to Digital to explore a potential relationship. His timing was impeccable as Digital was simultaneously searching for a technology solution to revolutionize the firm’s capabilities.
“We were both trying to solve similar, but adjacent, problems,” says Leibovich. “Digital offers the infrastructure, national scale and distribution system that instantly catapults our company into a legitimate contender in this space. Together, our power is magnified, and our clients will benefit as a result.”
Digital CEO Bruckman agrees. “It was time to reestablish the digital offering referenced in our company name, yet in a way that does not follow a path well-traveled,” says Bruckman. “Our investment in GoCo.io will not only change the way we do business, but will forever change what SMB employers can expect from their employee benefits advisors.”
About GoCo.io
GoCo.io, based in Houston, Texas, creates technology solutions that reimagine the way companies interact with their employees. By creating delightful user experiences, the technology transcends operational value and helps small and mid-sized businesses transform their culture. GoCo.io’s modern web platform streamlines critical business operations, including employee onboarding and off-boarding, document management, HR compliance and benefits administration. The founders have an impressive track record in the tech industry, notably launching MarketZero, Inc., a gaming analytics platform later acquired by gaming giant Zynga. Soon after they founded Arpeggi, Inc., a GE-backed company that developed bioinformatics solutions for human genome sequencing and analysis, which was acquired by biotech firm Gene by Gene.
About Digital Insurance
Digital Insurance is the largest employee benefits-only company in the United States. Distinguished by its focus on innovation, advocacy and education, the company creates greater value for employers and inspires individuals to become more engaged healthcare consumers. Its main division, Digital Benefit Advisors, offers experienced, local market experts in communities across the country, providing innovative solutions and expanded services to help companies meet their strategic business objectives. Headquartered in Atlanta, Digital has over 600 employees throughout the country and serves 30,000 companies, partners with 275 leading brokers and manages nearly $4 billion in premiums. Digital Insurance has been named to the Inc. 5000 List of America’s fastest-growing companies every year since the honor’s inception in 2007.
