A leading employee benefits-only agency in the U.S., Digital Insurance entered into an alliance with Pennsylvania Credit Union Association (PCUA) to provide its employees with enhanced health insurance services. Digital Insurance is a wholly owned subsidiary of a leading title insurance provider, Fidelity National Financial Inc. (FNF)
As per the deal, Digital Insurance’s largest segment, Digital Benefit Advisors (DBA) will provide resources, expertise and education to the PCUA credit union members and their employees. This is aimed to assist the targeted clients to comprehend and steer through the complications associated with health care reform, propagated by the Affordable Care Act.
The Affordable Care Act aims to increase the rate of health insurance coverage and at the same time reduce the overall health care costs thereby making health insurance affordable. For this, the insurance companies are required to provide coverage to all applicants at the same rate. The alliance of Digital and PCUA is in line with the objectives of the act as it aims to insure more members and their employees through Digital’s employee-benefits program.
PCUA provides legislative, promotional, educational and operational assistance to around 400 Pennsylvanian credit unions and caters to more than 3.7 million members. Through the partnership, Digital will be able to access the huge clientele base of the company and fortify their employee benefits plans by making necessary alterations.
Digital partners with various companies to provide their members with finest employee benefits solution. This has augmented the clientele base for the company and enhanced revenues.
The aforementioned partnership is another such endeavor of the company whereby it will provide employee benefits solution to members of credit unions associated with PCUA. We expect this deal to help Digital enhance its revenues further thereby bolstering earnings for Fidelity going forward.
Fidelity currently carries a Zacks Rank #3 (Hold). Among other insurers, American Safety Insurance Holdings Inc. (ASI), AmTrust Financial Services Inc. (AFSI) and State Auto Financial Corp (STFC) carry a favorable Zacks Rank #1 (Strong Buy) and appear impressive.
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