3i Info rolls out risk broking bourse

3i Infotech, the fourth-largest domestic software products company, today launched an insurance broking exchange, providing a real-time platform for life and general insurers, brokers and customers to strike deals.

Premia insurance broking eXchange, a first-of-its-kind subscription-based broking solution, allows customers to place requests for insurance quotes from brokers after which they can submit proposals to insurers based on the quotes and collect responses from them to do a comparative analysis and finally select the best suited coverage for the customer.

The company will make use of the Insurance Brokers' Association of India (IBAI) to promote the exchange. The association has 228 direct and composite brokers licensed by the Insurance Regulatory Development Aunthority of India.

The exchange will be offered with a monthly fee, so as to help brokers to a void large IT investments in software and related hardware. Based on a pay-per-use policy, billing to brokers will be dependent on the quantum of usage.

Hari Padmanabhan, deputy managing director of 3i Infotech, said, "Insurance brokers face a daunting task of servicing a rapidly expanding customer base. Through Premia exchange, we aim to bridge the information gap between brokers, insurance companies and consumers by facilitating information assimilation and provide customer centric insurance solutions in a competitive market."

Meanwhile, the IRDA has constituted a six member expert committee to review the Regulations governing the licensing of brokers. The Committee has been constituted to making recommendations required to strengthen the role of brokers.

Speaking about the recommendations from the broking commitee, Mr Bharat J Boda, president of Insurance Brokers Association of India said, "Currently the minimum capital required is Rs 50 lakh for a direct broker, two crore for a reinsurance broker and 2.5 crore for a composite broker. We want the capital to be reduced from 25 lakh to one crore. The key areas that needs to be looked at are allowing sub-broking, co-broking between licensed brokers, adequacy regulation for brokers, relaxing the norms for broking license. A meeting will take place next month in Delhi followed by another meeting in Chennai after which the recommendations will be finalised.

Around 18 per cent of the premium of the non life market comes through broking. The subcription will be based on the value of the business done. However, mega policies can not be bought through the portal.