AXA, global leader in insurance, is expanding its business across Asia in the mid to long-term in a bid to reach a customer base of 100 million in the region by 2030. Henri de Castries, Chairman and CEO of AXA Group, recently visited the country to appreciate better the opportunities present in emerging Asian markets like the Philippines.
Spotlight on Asia
“Asia is a major strategic focus for the AXA Group, and our ambition is to have 100 million clients in the region by 2030,” shares de Castries. “We are already very present from a business standpoint and we are now looking to seize the opportunities offered by the region.”
Based on various studies collated by AXA, the Asian population is seen to reach 4.9 billion by 2030, seven times bigger than Europe’s population. The region’s economy is also projected to expand to $38 trillion.
Moreover, it is projected that in 2030, Asia will have 65% of the world’s middle class, increasing from only 500 million in 2009 to 3 billion in 2030. The Asian middle-class is also expected to account for 60% of total middle-class spending worldwide in 2030.
Despite currently having the highest savings rate (as % of GDP) at 42% in 2014 (Asia, ex-Japan), life insurance penetration (as % of GDP per capita) is only at 0%-2% among emerging markets in the region, much lower as compared to mature markets such as Europe at 5%-8%. In fact, the protection gap in Asia (ex-Japan) is estimated to be at $32 trillion.
With these in mind, AXA created three (3) new structures dedicated to investment and innovation in Asia, in order to better connect the Group to the region’s rapidly developing entrepreneurs, talents and new business models. These structures will complement the existing presence of the AXA Group in Europe and North America with the very same objective: to improve customer experience, through partnerships, pilots and investments.
The AXA Lab Asia in Shanghai is dedicated to foster innovation and further the spirit of entrepreneurship through partnerships with the most forward-thinking companies. The AXA Data Innovation Lab in Singapore will act as a business-focused center for data analytics. Another office based in Hong Kong called of AXA Strategic Ventures targets to seize numerous business investment opportunities in Asia, accompanying European and American startups in the region.
“We are confident that these new structures will prove decisive in identifying untapped opportunities to accelerate our digital transformation and ultimately better serve and protect our clients,” de Castries concludes.
AXA in the Philippines
With the focus on Asia, it is not surprising that AXA sees the potential of emerging markets like Indonesia, Thailand, Malaysia, and the Philippines.
“I’m a big believer of the Philippine market,” says Benoit Claveranne, CEO for Life business of AXA Asia. “First, it is a big market with a population of over 100 million. Next, the Philippine economy is now one of the fastest growing in Southeast Asia — and it’s not just a one-time thing; it has been growing year after year. In the next 10 years, I see the Philippines as being a much bigger business for AXA than what it is today.”
AXA Philippines, one of the largest and fastest growing life insurance companies in the country, is poised for sustainable growth in the next several years.
“In our thrust to give Filipino customers what they need, we have continued to innovate,” shares Rien Hermans, President & CEO of AXA Philippines. “We launched new, first-in-the-market health solutions that cover 56 critical conditions. We launched AXA ION, the country’s first online life insurance store. We launched the ‘myAXApartner’ portal that allows customers to choose their own AXA financial advisor.”
“We continue to leverage our partnership with Metrobank and continue to grow the number of AXA financial advisors and agents we have nationwide. We also recently just celebrated our first year of partnership with PSBank. Through all these, we will continue to be available, reliable, and attentive to our customers. Focusing on our customers — that is the best growth strategy we have,” Hermans concluded. ADVT.