NU Online News Service, Feb. 1 — 10:53 a.m. – SimplyHealth Inc., Atlanta, has transferred the servicing of its retail insurance brokerage business to Digital Insurance Inc., Atlanta.

SimplyHealth will now focus on selling software that purchasers can use to develop their own health coverage sales Web sites, Digital Insurance says.

Three years ago, Digital Insurance and SimplyHealth were both trying to use the Web to sell health coverage directly to individuals and small businesses.

In late 1999 and early 2000, SimplyHealth announced $30 million in venture capital deals, and a three-year agreement to sell health coverage through Web sites run by WebMD Corp., Elmwood Park, N.J.

SimplyHealth agreed to pay WebMD $10 million a year for the WebMD health insurance distribution rights, the company reported.

Last year, SimplyHealth began to sell stand-alone health insurance site construction software and shift away from dependence on retail sales.

Around the same time, Digital Insurance began emphasizing relationships with associations and brokers. It has announced deals with at least 10 broker and affinity groups in the past 12 months.