ATLANTA, GA – April 15, 2016 - Ebix, Inc. (NASDAQ: EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance, financial and healthcare industries, today announced that it has signed a contract with Placing Platform Limited (PPL), to deploy a single insurance exchange across the entire London insurance marketplace, to facilitate electronic placement of insurance, while capturing and processing risks electronically. The PPL Board signed the contract on behalf of the International Underwriting Association (IUA), the London & International Insurance Brokers' Association (LIIBA) and the Lloyd's Market Association (LMA).
In 2013, the London Market Group's (LMG) Future Process review concluded, amongst other things, that the market needed to improve its accessibility by delivering a central placing platform. This platform would support a flexible negotiation process, facilitate access to the market and offer faster placement for the benefit of the client. The platform would support both traditional face-to-face negotiations and purely electronic placements or a combination of both. The IUA, LIIBA and LMA agreed that such a central placing platform would be best delivered via a market utility. As a result, the PPL was formed with full support from both broker and insurer firms, to coalesce around a single electronic "platform." PPL was set up as a genuine team effort with all sectors of the market being brought together in a fully representative organization.
A total of 26 subject matter expert practitioners, representing both carriers and brokers, were involved in the selection process, drawing up a detailed description of requirements. Independent consultants were hired to ensure the selection process was objective, transparent and fair. After a thorough evaluation process, PPL selected Ebix's team and technology for the provision, governance and management of the platform.
Over the last few years, Ebix has worked closely with PPL to enhance the platform to meet the London modernization goals, while completing extensive platform testing. Ebix also disclosed that its contract with PPL is primarily a subscription contract that is expected to generate upwards of $75 million over the next 5 years ($15 million per year) from the electronic placement exchange service, with more than 85% of that number coming from annual subscription fees payable to Ebix. Ebix will bill PPL for its services, which in turn will be funded by all the market constituents, funding commitments for which have already been secured by PPL.
David Ledger, Chairman of PPL commented: "We are delighted that the contract has been signed. Ebix has been really supportive through the process and worked closely with the PPL team to make sure the project stayed on track. We are excited about working with them to take the launch forward, and are confident that the combination of their technology and the market's insurance expertise will make for a world class solution which will make London an easier place to do business."
Robin Raina, President & CEO of Ebix said, "It is the first time in the world that a single Exchange platform is being deployed to facilitate electronic placement of insurance across a market comprised of all the constituents. That it is being done by the largest insurance marketplace in the world - London - makes this a particularly significant event in the global insurance market. We are honored and excited to be powering the technology behind this Exchange endeavor and are committed to doing everything within our means to make this world-leading, ground-breaking effort a huge success. I congratulate PPL, LMG and Lloyds for taking the initiative to modernize the London market as a part of LMG's Target Operating Model (TOM) and assure them of our complete support."
There are considerable advantages derived from the Exchange, not the least of which is the avoidance of considerable costs incurred by carriers integrating with multiple placing systems rather than a single market utility. It is estimated that carriers could avoid over $90 million in such set-up costs and $18 million annually, by supporting one system. Economies of scale and the potential to reduce redundant data-entry and other functions should contribute further financial advantages.
The PPL is also likely to further enhance the London market's leadership and global reputation. With this exchange, London will be the first and only commercial insurance market globally to implement electronic placing. It will be able to provide real time status updates to clients on the progress of quotes 24 hours a day. Clean, standard, structured contracts will replace scanned versions with manual stamps. Signed line confirmations to carriers could be accelerated by up to 30 days.
Such improvements will make the London market a more efficient place to do business. There is a consensus that London has to continue to modernize to attract more global insurance business and this exchange is designed to lower placement costs and make the market more accessible to international clients.
A leading international supplier of On-Demand software and E-commerce services to the insurance, financial and healthcare industries, Ebix, Inc., (NASDAQ: EBIX) provides end-to-end solutions ranging from infrastructure exchanges, carrier systems, agency systems and risk compliance solutions to custom software development for all entities involved in the insurance industry.
With 40+ offices across Brazil, Singapore, Australia, the US, UK, 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
As used herein, the terms "Ebix," "the Company," "we," "our" and "us" refer to Ebix, Inc., a Delaware corporation, and its consolidated subsidiaries as a combined entity, except where it is clear that the terms mean only Ebix, Inc.
The information contained in this Press Release contains forward-looking statements and information within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. This information includes assumptions made by, and information currently available to management, including statements regarding future economic performance and financial condition, liquidity and capital resources, acceptance of the Company's products by the market, and management's plans and objectives. In addition, certain statements included in this and our future filings with the Securities and Exchange Commission ("SEC"), in press releases, and in oral and written statements made by us or with our approval, which are not statements of historical fact, are forward-looking statements. Words such as "may," "could," "should," "would," "believe," "expect," "anticipate," "estimate," "intend," "seeks," "plan," "project," "continue," "predict," "will," "should," and other words or expressions of similar meaning are intended by the Company to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are found at various places throughout this report and in the documents incorporated herein by reference. These statements are based on our current expectations about future events or results and information that is currently available to us, involve assumptions, risks, and uncertainties, and speak only as of the date on which such statements are made.
Our actual results may differ materially from those expressed or implied in these forward-looking statements. Factors that may cause such a difference, include, but are not limited to those discussed in our Annual Report on Form 10-K and subsequent reports filed with the SEC, as well as: the risk of an unfavorable outcome of the pending governmental investigations or shareholder class action lawsuits, reputational harm caused by such investigations and lawsuits, the willingness of independent insurance agencies to outsource their computer and other processing needs to third parties; pricing and other competitive pressures and the Company's ability to gain or maintain share of sales as a result of actions by competitors and others; changes in estimates in critical accounting judgments; changes in or failure to comply with laws and regulations, including accounting standards, taxation requirements (including tax rate changes, new tax laws and revised tax interpretations) in domestic or foreign jurisdictions; exchange rate fluctuations and other risks associated with investments and operations in foreign countries (particularly in Australia and India wherein we have significant operations); equity markets, including market disruptions and significant interest rate fluctuations, which may impede our access to, or increase the cost of, external financing; and international conflict, including terrorist acts.
Except as expressly required by the federal securities laws, the Company undertakes no obligation to update any such factors, or to publicly announce the results of, or changes to any of the forward-looking statements contained herein to reflect future events, developments, changed circumstances, or for any other reason.
Readers should carefully review the disclosures and the risk factors described in the documents we file from time to time with the SEC, including future reports on Forms 10-Q and 8-K, and any amendments thereto.