ATLANTA, GA – July 08, 2013 – Ebix, Inc., (NASDAQ: EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance industry, today announced that its subsidiary Ebix Latin America has executed a contract with SINCOR-SP (Syndicate of Insurance Brokers of the State of São Paulo) for the implementation and deployment of a Multi-Quote Insurance Exchange Solution. There are about 70,000 brokers in Brazil, of which 40% operate in the State of São Paulo and are associated to SINCOR-SP.
The Multi-Quote Solution sponsored by SINCOR is the first Broker led initiative in Brazil to promote a New Business Exchange Hub, connecting both insurance brokers and carriers. Initially Ebix will be processing and hosting the complete new business process for auto insurance, in sequence other products and lines of business will be added, such as Life, Annuities and P&C. Each state in Brazil has its own SINCOR and several of these from other states have already shown interest on making such a solution available to their associated brokers.
“We are very excited with this prestigious contract as it sets a leadership precedent for Broker aggregations in other Brazilian states to follow.” Ebix Latin America SVP and Division Head Mario Nogueira said, “This deal lays out the mechanism for brokers to concentrate on selling insurance while outsourcing their IT needs to a exchange hub, on a business model that compensates the exchange provider based on registration and exchange utilization fees. We expect this deal to result in recurring annual revenues worth millions of dollars for Ebix Latin America, once fully deployed, from the exchange solution for auto insurance itself. As this solution is deployed across other products and the expanse of services is increased through this exchange hub, we expect the recurring revenue streams to grow accordingly.”
During an event held between June 28 and June 30, in the presence of over 1.000 brokers, SINCOR-SP promoted the launching of this solution to the market. Speaking at the opening ceremony, the president of SINCOR-SP, Mario Sergio de Almeida Santos, said: “Ebix speaks the same language as our own insurance market because it already integrates, as part of its core business, thousands of insurance brokers and insurance carriers, worldwide. Besides being completely focused in IT for insurance business, Ebix was able to offer us attractive investment values which made business sense and, in addition, it was the only provider company which was capable of offering a solution covering the full cycle of new business – from quotation, to proposal generation to contract issuance”.
In sequence, Mario Nogueira, talked about Ebix, its local and worldwide presence, the expanse of the the company, followed by Luis Maida, Ebix’s Latin America Senior Executive, who gave a 40 minute presentation about the New Business Multi-Quote STP Exchange to the audience of over 1.000 brokers. Mario Nogueira stressed Ebix’s interest “to continue offering, contributing and sharing know-how, technology and experiences from Ebix’s successful cases around the globe with SINCOR and its associated brokers, in the pursuit of a fruitful and long-term partnership”.
The Exchange solution for SINCOR-SP is expected to go live in Q4 of 2013. As per SINCOR-SP, more than 600 brokers had already signed up for utilization of the exchange at the conference itself, clearly outpacing its own estimates.
About Ebix, Inc.
A leading international supplier of On-Demand software and E-commerce services to the insurance industry, Ebix, Inc., (NASDAQ: EBIX) provides end-to-end solutions ranging from infrastructure exchanges, carrier systems, agency systems and BPO services to custom software development for all entities involved in the insurance industry.
With 30+ offices across Brazil, Singapore, Australia, the US, New Zealand, India and Canada, Ebix powers multiple exchanges across the world in the field of life, annuity, health and property & casualty insurance while conducting in excess of $100 billion in insurance premiums on its platforms. Through its various SaaS-based software platforms, Ebix employs hundreds of insurance and technology professionals to provide products, support and consultancy to thousands of customers on six continents. For more information, visit the Company’s website at www.ebix.com
Andy Brimmer / Tim Lynch / Andrew Siegel
Joele Frank, Wilkinson Brimmer Katcher