AXA's Strategic Partnerships Propel Growth in Southeast Asia's Insurance Market
Multinational insurer AXA strengthens its position in Thailand and the region through local partnerships and tailored solutions.
AXA, the second-largest European insurer by revenue, is expanding its presence in Southeast Asia by partnering with local banks to tap into the region's potential.
The French insurer's largest market in the region is Thailand, where it has collaborated with the state-owned Krungthai Bank for 28 years.
Additionally, AXA has established a joint venture with Bank Mandiri in Indonesia, its second-largest market, which dates back 21 years.
In the Philippines, AXA is experiencing growth through a partnership with Metrobank, the country’s second-largest private universal bank.
Hassan El-Shabrawishi, chief executive of AXA International Markets, stated that these partnerships enable AXA to better understand local customer needs and tailor their offerings accordingly.
He emphasized that local banks play a critical role in understanding both individual and corporate requirements, as they are often the main lenders in their markets.
"We try to help these banks to satisfy the needs of their corporate and retail customers alike," he said during a visit to Bangkok.
Since his appointment in June 2023, El-Shabrawishi oversees 17 markets across Latin America, Africa, the Middle East, Turkey, Southeast Asia, and South Korea, with AXA operating in a total of 51 countries.
In Thailand, AXA operates through two companies: Krungthai-AXA Life Insurance (KTAXA) and AXA Thailand General Insurance, both reporting to Sally O'Hara, AXA's chief executive for Southeast Asia and South Korea.
El-Shabrawishi described local banks as joint venture partners, highlighting that AXA enhances their operations by offering insurance expertise and risk management knowledge.
"They know their market, but they don't have insurance expertise.
We provide them with the global knowledge based on our operations in more than 50 markets," he stated.
Mrs. O'Hara reported that KTAXA has seen double-digit growth in new business, while general insurance has recorded similar growth for six consecutive years.
Post-pandemic, there is a heightened awareness among consumers regarding health insurance, leading new demographics to enter the insurance market.
With a distribution force of approximately 15,000 agents, AXA focuses on training its agents across all product lines to enhance customer outreach and retention.
El-Shabrawishi emphasized the importance of recognizing the diverse needs of customers in different countries.
He stated that a standardized product approach often fails to resonate with local markets.
AXA maintains a variety of products designed to meet the unique demands of different customers, reflecting a flexible and innovative approach.
In Thailand, the demand for health insurance is significant, with AXA offering products at various price points to cater to a broad customer base.
The company has established a specialized unit, AXA EssentiALL, to deliver accessible insurance solutions to underserved populations.
El-Shabrawishi pointed out that Southeast Asia represents a crucial growth area for AXA due to its low insurance penetration, approximately 5%, compared to 14% in France.
The region's burgeoning middle class and evolving customer needs present substantial opportunities.
He noted that Thailand's ageing population creates an additional layer of demand for protective insurance solutions, predicting that by 2030, nearly a quarter of Thailand's population will be over the age of 60.
Despite concerns about Thailand's economic growth, El-Shabrawishi remains optimistic about the potential within the market, focusing on customer needs rather than economic fluctuations.
He underscored the ongoing digital transformation in Thailand, which is influencing insurance offerings across various sectors, including health, travel, and property insurance.
AXA intends to enhance its digital products in response to this shift while recognizing that the insurance sector remains fundamentally a people-centered business.
The French insurer's largest market in the region is Thailand, where it has collaborated with the state-owned Krungthai Bank for 28 years.
Additionally, AXA has established a joint venture with Bank Mandiri in Indonesia, its second-largest market, which dates back 21 years.
In the Philippines, AXA is experiencing growth through a partnership with Metrobank, the country’s second-largest private universal bank.
Hassan El-Shabrawishi, chief executive of AXA International Markets, stated that these partnerships enable AXA to better understand local customer needs and tailor their offerings accordingly.
He emphasized that local banks play a critical role in understanding both individual and corporate requirements, as they are often the main lenders in their markets.
"We try to help these banks to satisfy the needs of their corporate and retail customers alike," he said during a visit to Bangkok.
Since his appointment in June 2023, El-Shabrawishi oversees 17 markets across Latin America, Africa, the Middle East, Turkey, Southeast Asia, and South Korea, with AXA operating in a total of 51 countries.
In Thailand, AXA operates through two companies: Krungthai-AXA Life Insurance (KTAXA) and AXA Thailand General Insurance, both reporting to Sally O'Hara, AXA's chief executive for Southeast Asia and South Korea.
El-Shabrawishi described local banks as joint venture partners, highlighting that AXA enhances their operations by offering insurance expertise and risk management knowledge.
"They know their market, but they don't have insurance expertise.
We provide them with the global knowledge based on our operations in more than 50 markets," he stated.
Mrs. O'Hara reported that KTAXA has seen double-digit growth in new business, while general insurance has recorded similar growth for six consecutive years.
Post-pandemic, there is a heightened awareness among consumers regarding health insurance, leading new demographics to enter the insurance market.
With a distribution force of approximately 15,000 agents, AXA focuses on training its agents across all product lines to enhance customer outreach and retention.
El-Shabrawishi emphasized the importance of recognizing the diverse needs of customers in different countries.
He stated that a standardized product approach often fails to resonate with local markets.
AXA maintains a variety of products designed to meet the unique demands of different customers, reflecting a flexible and innovative approach.
In Thailand, the demand for health insurance is significant, with AXA offering products at various price points to cater to a broad customer base.
The company has established a specialized unit, AXA EssentiALL, to deliver accessible insurance solutions to underserved populations.
El-Shabrawishi pointed out that Southeast Asia represents a crucial growth area for AXA due to its low insurance penetration, approximately 5%, compared to 14% in France.
The region's burgeoning middle class and evolving customer needs present substantial opportunities.
He noted that Thailand's ageing population creates an additional layer of demand for protective insurance solutions, predicting that by 2030, nearly a quarter of Thailand's population will be over the age of 60.
Despite concerns about Thailand's economic growth, El-Shabrawishi remains optimistic about the potential within the market, focusing on customer needs rather than economic fluctuations.
He underscored the ongoing digital transformation in Thailand, which is influencing insurance offerings across various sectors, including health, travel, and property insurance.
AXA intends to enhance its digital products in response to this shift while recognizing that the insurance sector remains fundamentally a people-centered business.