SimplyHealth Transfers Retail Brokerage Business to Digital Insurance; Will Focus Exclusively on Technology Solutions For the Insurance Industry

ATLANTA (February 1, 2002) – SimplyHealth and Digital Insurance announced that SimplyHealth has transferred the servicing of its retail insurance brokerage business to Digital Insurance. SimplyHealth will now focus exclusively on its rapidly growing software business that provides ‘state-of-the art’ integrated Web-based sales and service automation solutions to the insurance industry.

"Over the past 12 months, we have experienced dramatically increasing demand for our Web-native insurance sales and services solutions. After a nearly four-fold growth in our technology business in the last year, we began to evaluate organizations that could assist us in the transition away from our retail insurance brokerage beginnings," said Scott A. Remley, President and Chief Executive Officer of SimplyHealth. "We evaluated several firms and alternatives for this important migration and determined that Digital Insurance would offer our individual and small business clients the same high level of service and attention that our customers have come to expect from us."

As a technology-based brokerage firm, Digital Insurance partners with traditional national and regional brokers to service current and new small business and individual customers. Digital Insurance utilizes its Web-based technology, small business focus and central call center to provide an efficient employee benefit brokerage experience for small businesses and individuals in a way that complements that same focus traditional brokers apply to current middle and large markets.

"This is an agreement that made sense for both companies and continues a trend of brokers looking to Digital Insurance to help them service their small business and individual customers," said Tom Usilton, President and Chief Executive Officer of Digital Insurance. "The nine brokers we’ve partnered with in the last seven months have looked at our technology, small business and individual market focus, as well as our commitment to service and seen us as an ideal partner. We look forward to providing SimplyHealth’s customers with the same outstanding service and product selection we provide all of our customers."

About Digital Insurance

Headquartered in Atlanta, Digital Insurance delivers innovative health and benefits solutions designed specifically for small businesses nationwide. Digital represents the largest market share of small group business, working with brokers, agents and financial services companies to acquire or expand their customer base, as well as improve profitability and efficiencies. Through Digital’s INcompass suite of services, clients gain access to price advantages, an unparalleled range of products and the superior service experienced by large employers. For more information, visit www.digitalinsurance.com.