BSE EBIX to distribute LIC insurance products
Like most insurance companies, LIC has been constantly thinking up new distribution models and novel sales engines. Just a couple of weeks back, LIC had signed up with Policybazaar to use their agnostic insurance selling platform to provide advice driven insurance sales for LIC products. Now, the latest initiative for LIC is to tie up with BSE EBIX Insurance broking for selling and marketing its insurance products to a savvier crowd.
BSE EBIX Insurance Broking is a joint venture between the Bombay Stock Exchange (BSE) and EBIX Fincorp Exchange. During the week, LIC announced the signing of Insurance Broker Agreement for distribution of LIC products on the BSE EBIX Insurance Broking platform. As per the tie-up, BSE EBIX will offer LIC’s life and health insurance products to its clients using its omnichannel digital presence. The idea is to offer customer-centric solutions to buyers.
How would this arrangement benefit LIC?
Clearly, in a crowded insurance market, the policy originators are looking at a mix of proprietary market channels and agnostic marketing channels. Today, the trend its towards advice driven sales of insurance products and that is facilitated by a specialist like BSE EBIX adopting an advisory approach. Above all, LIC gets access to the 10 crore investor data base of the Bombay Stock Exchange.
How would this benefit the BSE EBIX joint venture?
As the CEO of BSE put it succinctly, the objective of BSE EBIX was to reach out to every individual to address their insurance needs in a manner that suited their unique status. LIC brings with it a legacy of trust and that will get transmitted to the customer offering. In addition, the BSE is able to build a new revenue stream by offering a value added product to its existing client base.
The big USP (unique selling proposition) of BSE EBIX is to offer a pan-India “Phygital” solution offering. That is a combination of physical and digital or you can call it an omnichannel experience. BSE EBIX has a vast army of point of sale professionals (POSP) which will deliver the best of Insurance products and risk management solutions to the end customer. This can enable BSE EBIX to quickly build on its life insurance franchise.
It may be recollected that BSE EBIX had beta launched operations in February 2020, offering private car and two-wheeler auto insurance. The idea was to provide a new advise and choice based paradigm for buyers of insurance and also for the distributors. This omnichannel front end enables offering a wide array of insurance offerings in a highly efficient manner. At the same time it becomes easy for distributors in the value chain to just loop on to the BSE EBIX system as the entire back-office and operations are taken care of.
Today, on the BSE EBIX platform, there are 7 general insurance companies in Motor, 5 Health Insurance and 3 in life insurance. BSE EBIX boasts of a registered user base of over 10,500 Point of Sale Persons (POSP) out of which 4,677 are certified and ready to undertake business via the BSE EBIX platform.
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