BSE is hopeful of rolling out its insurance distribution business by the end of 2018. According to Ashishkumar Chauhan, MD and CEO, BSE is in the process of applying to the insurance regulator IRDAI seeking necessary approvals for its venture into insurance distribution.
The stock exchange had entered into a joint venture agreement with Nasdaq-listed Ebix Inc for setting up a subsidiary company for the distribution of insurance products of life, non-life and health insurance companies. Ebix is a leading international supplier of on-demand software and e-commerce services to the insurance, financial, e-governance and healthcare industries.
While BSE and Ebix will hold 40 per cent each in the joint venture company, the rest 20 per cent will be held by individuals or companies nominated by BSE or Ebix.
“We have set up a company called BSE-Ebix Insurance Broking for the distribution of insurance products. We are in the process of applying to IRDAI seeking their approval. We hope to commence operations before the end of this calendar year,” Chauhan told newspersons on the sidelines of a fintech forum organised by the Merchants’ Chamber of Commerce and Industry here on Saturday.
The joint venture company will leverage the physical infrastructure of BSE and the technology platform of Ebix, he said. BSE has a network of close to 2 lakh outlets across 3,000 towns and cities.
According to Chauhan, the exchange has been largely focusing more on ‘speculation’ rather than investment products over the last 20 years. However, its success with the distribution of mutual fund schemes, which it started in 2010, has encouraged it to look at the distribution of other financial products.
Currently nearly 20 per cent of the investments flowing into mutual funds are routed through the bourse. “Close to 40 per cent of the new or fresh investments flowing into mutual funds are coming in through our platform,” he said.