Ebix monopoly comes under fire
Technology supplier Ebix has rebuffed a warning by Steadfast Executive Chairman Robert Kelly that it must not “abuse its monopoly position” in the local market.
Mr Kelly told last week’s ANZIIF breakfast seminar in Melbourne that if EbixExchange allows its pricing structure to “get out of control” brokers will have little alternative as there are no other providers in the market.
Last December US-owned Ebix bought Telstra eBusiness Services for $50 million, subsequently renaming it EbixExchange Australia.
“The industry has allowed technology to slip into the hands of a third party,” Mr Kelly said. “It’s time for a line in the sand.”
But Ebix Australia CEO Leon d’Apice says his company is focused solely on developing solutions for the insurance market and can hardly be regarded as a third party.
“One has to ask who is best placed to provide leadership in this segment,” he told insuranceNEWS.com.au. “The insurers couldn’t do it, so they sold [Insurance Network Services] to Telstra. But Telstra struggled with the business, which is why they decided to sell it, too.”
Mr d’Apice says industry consortiums are often seen as the ideal solution, “but they haven’t had a great track record of success. It is far better to engage with a technology specialist with a real commitment to the market.”
Mr Kelly told last week’s ANZIIF breakfast seminar in Melbourne that if EbixExchange allows its pricing structure to “get out of control” brokers will have little alternative as there are no other providers in the market.
Last December US-owned Ebix bought Telstra eBusiness Services for $50 million, subsequently renaming it EbixExchange Australia.
“The industry has allowed technology to slip into the hands of a third party,” Mr Kelly said. “It’s time for a line in the sand.”
But Ebix Australia CEO Leon d’Apice says his company is focused solely on developing solutions for the insurance market and can hardly be regarded as a third party.
“One has to ask who is best placed to provide leadership in this segment,” he told insuranceNEWS.com.au. “The insurers couldn’t do it, so they sold [Insurance Network Services] to Telstra. But Telstra struggled with the business, which is why they decided to sell it, too.”
Mr d’Apice says industry consortiums are often seen as the ideal solution, “but they haven’t had a great track record of success. It is far better to engage with a technology specialist with a real commitment to the market.”