Ebix Announces Agreement to Deploy Multi-Quoting Straight Through Processing (STP) Exchange Solution in Sao Paulo, Brazil
Ebix, Inc., (Nasdaq: EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance industry, today announced its subsidiary Ebix Latin America executed a contract with SINCOR-SP (Syndicate of Insurance Brokers of the State of Sao Paulo) for the implementation and deployment of a Multi-Quote Exchange Solution for auto insurance. There are about 70,000 brokers in Brazil, of which 40% operate in the State of Sao Paulo and are associated to SINCOR-SP. 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.
The Multi-Quote Solution sponsored by SINCOR is the first 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.
During an event last week held between June 28 and June 30, with 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, SVP and Division Head for Ebix Latin America, talked about Ebix, its local and worldwide presence, main clients, facts and key figures about the company, followed by Luis Maida, Ebix Latin America Sales Executive, who gave a 40 minute presentation about the New Business Multi-Quote 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".
At the end of this event, more than 600 brokers enrolled for the utilization of the solution as soon as it goes live in the market, planned for October 2013. In line with conservative estimates made by SINCOR, this number of registrations was only expected to be reached after 6 months of operation, due to it being a new and innovative way of doing business in the Brazilian market.
Also in line with the same conservative estimates, the expected amount of revenues for Ebix in the first 3 years amounts to approximately BRL 5.4 million, while at the end of the initial contract term of 5 years, the conservative figures point to a total amount of revenues in the order of BRL 15 million. These figures should grow considerably with the increase in volumes of registered users, with new products and services offered through the exchange hub and with the participation of other SINCORs from other states of Brazil.
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
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