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Ebix Signs Pioneering Contract to Deploy Single Exchange Platform for Electronic Insurance Placement, Across London — the World's Largest Insurance Market

ATLANTA, GA--(Marketwired - Apr 15, 2016) - Ebix, Inc. (NASDAQ: EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance, financial and healthcare industries, today announced that it has signed a contract with Placing Platform Limited (PPL), to deploy a single insurance exchange across the entire London insurance marketplace, to facilitate electronic placement of insurance, while capturing and processing risks electronically. The PPL Board signed the contract on behalf of the International Underwriting Association (IUA), the London & International Insurance Brokers' Association (LIIBA) and the Lloyd's Market Association (LMA).

In 2013, the London Market Group's (LMG) Future Process review concluded, amongst other things, that the market needed to improve its accessibility by delivering a central placing platform. This platform would support a flexible negotiation process, facilitate access to the market and offer faster placement for the benefit of the client. The platform would support both traditional face-to-face negotiations and purely electronic placements or a combination of both. The IUA, LIIBA and LMA agreed that such a central placing platform would be best delivered via a market utility. As a result, the PPL was formed with full support from both broker and insurer firms, to coalesce around a single electronic "platform." PPL was set up as a genuine team effort with all sectors of the market being brought together in a fully representative organization.

A total of 26 subject matter expert practitioners, representing both carriers and brokers, were involved in the selection process, drawing up a detailed description of requirements. Independent consultants were hired to ensure the selection process was objective, transparent and fair. After a thorough evaluation process, PPL selected Ebix's team and technology for the provision, governance and management of the platform.

Over the last few years, Ebix has worked closely with PPL to enhance the platform to meet the London modernization goals, while completing extensive platform testing. Ebix also disclosed that its contract with PPL is primarily a subscription contract that is expected to generate upwards of $75 million over the next 5 years ($15 million per year) from the electronic placement exchange service, with more than 85% of that number coming from annual subscription fees payable to Ebix. Ebix will bill PPL for its services, which in turn will be funded by all the market constituents, funding commitments for which have already been secured by PPL.

David Ledger, Chairman of PPL commented: "We are delighted that the contract has been signed. Ebix has been really supportive through the process and worked closely with the PPL team to make sure the project stayed on track. We are excited about working with them to take the launch forward, and are confident that the combination of their technology and the market's insurance expertise will make for a world class solution which will make London an easier place to do business."

Robin Raina, President & CEO of Ebix said, "It is the first time in the...