After tapping the mutual fund distribution network in India through its platform BSE Star MF, BSE has now ventured into insurance distribution platform. A recent regulatory filing states that BSE will set up an insurance distribution network platform with world’s largest insurance exchange, Ebix Inc. to distribute life, non-life insurance and health insurance policies through network of insurance intermediaries.
The venture will utilise the existing distribution reach of BSE and technology support of Ebix Inc.
In its first phase, stockbrokers registered with BSE could empanel with this B2B platform to distribute insurance policies. However, they will have to obtain insurance broking license from IRDAI. Later, this facility will be extended to other insurance intermediaries like agents, web-aggregators and insurance marketing firms (IMFs).
In a statement issued by the company, Ashishkumar Chauhan, MD and CEO, BSE said “We are pleased to team up with Ebix in this venture which has a potential of allowing consumers across the length and breadth of the country, easier and faster access to preserving their wealth through buying insurance and expeditious claims settlement. It shall be our endeavour to provide customers a world class experience by being close to where they are by leveraging our vast hugely compliant distribution network, as also through the adoption of state of the art world leading technology.”
Many industry experts welcome this move, as it will increase the insurance penetration.
Ebix is a leading international supplier of on-demand software and e-commerce services to the insurance, financial, e-governance and healthcare industries. The company aims to expand its footprint in India by investing $200 million in the financial exchange services space.