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Ebix builds on Australia-NZ exchange experience

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Global insurance software developer Ebix Inc has entered the US property and casualty (P&C) technology exchange market by acquiring Connective Technologies.

Ebix Australia’s Sunrise Exchange is the local industry’s largest internet-based exchange for insurers and brokers, with the parent company hinting that its success in Australia and NZ has encouraged it to invest in similar platforms in the US.

The company has declined to release the financial details of the transaction, funding the acquisition through its own cash reserves. Connective services about 60 insurers, and will become part of the EbixExchange division.

“Ebix today successfully runs leading P&C exchanges in Australia and NZ,” EbixExchange Senior Vice President Dan Delity said. “We have been contemplating entering the P&C exchange markets in the US for some time now.”

The US accounts for about 38% of the $US1.5 trillion ($1.82 trillion) premiums transacted globally each year.

Mr Delity says about $US59 billion ($72 billion) a year is spent on paper-based processes in the US P&C risk insurance sector.