The Bombay Stock Exchange (BSE) and Nasdaq-listed Ebix have signed a memorandum of understanding (MoU) to develop an insurance distribution network in India. The two companies will be forming a joint venture (JV) through their subsidiaries, BSE Investments Limited and Ebix Fincorp Exchange, for sales and processing of insurance in the country.

The new venture called as BSE-Ebix intends to deploy an insurance distribution exchange platform, that will allow distribution outlets, stock brokers, wealth management advisors and financial institutions etc to sell life and non-life products. The platform will cover the entire insurance cycle including customer relationship management, agency management, multi-quoting, underwriting, policy creation, claims filing and settlement, and back-end insurance policy administration, as indicated by this Business Line report.

Ebix, now the parent company of ItzCash, has been on an acquisition spree in India and been buying a number of companies in the money transfer business. In September, it bought Paul Merchants for around $40 million and it acquired Money Transfer Service Scheme (MTSS) businesses of YouFirst Money Express Private Limited and Wall Street Finance Limited. The company said that it would be building a Financial Exchange and wanted to expand to insurance, lending & credit, mutual funds & investments segments.

Ebix is a company which supplies software to the insurance, financial, e-governance and healthcare industries, and currently operates in 40 countries, including India.