Stock exchange BSE and its joint venture (JV) partner Ebix have received an in-principle approval to start an insurance broking business from Insurance Regulatory & Development Authority of India (IRDAI).
The venture, branded as BSE-Ebix Broking Insurance Broking, will enable distribution outlets, wealth management advisors and point of sales (PoS) to sell life and non-life insurance products. The actual insurance distribution of BSE-Ebix will commence after receipt of certificate of licence from IRDAI.
Commenting on the tie-up, Ashishkumar Chauhan, MD and CEO, BSE said, "We have realised that there is huge demand for investment products, and our platforms like BSE StAR MF are performing very well. We expect to taste similar success in the insurance distribution segment and help insurers expand their network through the combined reach of BSE and EbixCash."
EbixCash is the Indian subsidiary of Ebix, which currently transacts $18 billion in gross merchandise value (GMV) on its platforms, besides being an end-to-end services market leader in the financial exchange industry.
BSE-Ebix aims to reach out to remote villages across India to offer insurance products. The venture will make use of the reach of both BSE and EbixCash that spans over three lakh outlets across the country.
Ebix Group Chairman, President and CEO Robin Raina said, “Through this venture our goal is to revolutionise not only buying of insurance from a consumer perspective but also enable insurers to distribute insurance products in a highly efficient manner, while automating and integrating complex back-end processes seamlessly with front-end distribution.”
The venture also aims to cover the entire insurance lifecycle from customer relationship management, agency management, multi-quoting, underwriting, policy creation, and claims filing with an insurance company. It will also coordinate with respective insurance companies for settlement of claim and back-end insurance policy administration.
Insurance broking is among the three main distribution channels for policies in India, the other two being banks and agents. Corporate customers prefer brokers to act as an intermediary for product purchase.