ebix

Businessmodel of Ebix

Customer Segments

Ebix has a niche market business model, with a specialized customer segment. The company targets its offerings at organizations in the financial, insurance, and healthcare industries.

Value Proposition

Ebix offers four primary value propositions: accessibility, performance, risk reduction, and brand/status.

The company creates accessibility by providing a wide variety of options. It has acquired numerous firms since its founding, including WDEV, Oakstone Publishing, HealthcareMagic, Peak Performance, Confirmnet Corporation, and Periculum Services Group. This strategy has enabled it to greatly expand its capabilities and diversify its portfolio. Consequently, it can provide end-to-end solutions including custom software development, infrastructure exchanges, agency systems, carrier systems, and risk compliance systems.

The company demonstrates strong performance through tangible results. It claims that its solutions have resulted in 50% cost savings, 35% productivity enhancements, and 75% faster time-to-market for its clients. Specific positive outcomes for clients include the following:

  • Transamerica Life Insurance Company used Ebix’s solutions to reduce time to process cash business and additions from 3-5 days to one-day (same-day)
  • The South Bend Clinic used Ebix’s solutions to boost its website traffic by 10% and increase average visitor time on page
  • WELBRO Corporation used Ebix’s solutions to maintain economies of scale, resulting in higher compliance rates and significant cost savings
  • Baylor Health Care System used Ebix’s solutions to increase website traffic and visitor stay length
  • Insurance Design Administrators used Ebix’s solutions to greatly reduce claim processing time The company reduces risk by maintaining high standards. It is Microsoft-certified and its center in India has achieved Carnegie Mellon’s highest CMMi 5 rating. It also has ISO27001 and ISO9001:2000 certifications.

The company has established a strong brand due to its success. It has over 2,800 employees and operates over 40 offices across Australia, Brazil, Canada, India, New Zealand, Singapore, the United States, and the United Kingdom. It has conducted more than $100 billion worth of insurance premiums annually on its platforms.

It has a recurring revenue base of  80%, with a client base that includes hundreds of corporate clients and carriers and hundreds of thousands of brokers. Its customers are in more than 50 countries across six continents. Lastly, it has won many honors, including the following:

  • Recognition as the fourth fastest-growing technology company in the world by Fortune
  • Recognition as the sixth fastest-growing technology company in the world by Forbes
  • XCelent Awards for Advanced Technology and Breadth of Functionality from Celent
  • An ACORD Streamline Award in the Business Process Improvement category
  • A Gold Aster Award in the Healthcare/Patient Education category ### Channels

Ebix’s main channel is its direct sales team. It also sells its products and services through resellers.

The company promotes its offerings through its website, social media pages, advertising, sponsorships, and participation in industry events such as forums, expos, summits, and conferences.

Customer Relationships

Ebix’s customer relationship is primarily of a self-service, automated nature. Customers utilize its products while having limited interaction with employees. That said, there is a personal assistance component in the form of phone and e-mail support.

Key Activities

Ebix’s business model entails designing and developing its products and services for its clients.

Key Partners

Ebix’s key partners are the resellers that help it sell its products/services and the suppliers that provide it with the materials it needs to develop its solutions.

Key Resources

Ebix’s main resources are its human resources, who include the engineers that design and develop its products, the sales employees that sell them, and the customer service personnel who provide support. Its staff includes hundreds of domain-specific technology and business professionals.

Cost Structure

Ebix has a cost-driven structure, aiming to minimize expenses through significant automation. Its biggest cost driver is cost of services provided, a variable expense. Other major drivers are in the areas of administration, product development, and sales/marketing, all fixed costs.

Revenue Streams

Ebix has two revenue streams:

Product Revenues – Revenues the company generates from the sale of the following products:

  • Exchanges – Data exchanges it operates in the areas of life insurance, annuities, employee health benefits, risk management, workers compensation, insurance underwriting, and P&C insurance
  • Broker P&C Systems - Back-end systems (eGlobal, WinBeat, and EbixASP) for international P&C insurance brokers who seek a global system solution
  • Risk Compliance Solutions - Business process outsourcing services that include domain intensive project management, time and material based consulting engagements, the tracking of certificates of insurance, and claims adjudication and settlement

  • Carrier P&C Systems - On-demand back-end systems for P&C insurance companies accessed through licenses and subscriptions Professional/Support Service Revenues – Revenues the company generates from:

  • Services delivered over its exchanges or from its ASP platforms
  • Software development projects and related fees for consulting, implementation, training, and project management
  • Business process outsourcing
Written on October 25, 2017