AXA Fuels Southeast Asia Insurance Boom via Local Partnerships
AXA, Europe’s second-largest insurer by revenue, is strategically leveraging local banking partnerships to unlock the vast, untapped potential of the Southeast Asian insurance market. Instead of a one-size-fits-all approach, the company emphasizes understanding local nuances and tailoring its offerings to meet specific customer needs. This strategy, according to Hassan El-Shabrawishi, Chief Executive of AXA International Markets, is central to the company’s success in the region.
Mr. El-Shabrawishi, who oversees 17 markets across Latin America, Africa, the Middle East, Turkey, Southeast Asia, and South Korea, highlighted the importance of collaborating with local banks. These partnerships, often structured as joint ventures, provide AXA with invaluable insights into market dynamics, customer segmentation, and evolving needs. In Thailand, AXA’s largest Southeast Asian market, a 28-year partnership with Krungthai Bank has proven fruitful. Similarly, in Indonesia, the company’s 21-year collaboration with Bank Mandiri underscores its commitment to long-term local engagement. AXA also enjoys a robust partnership with Metrobank, the second-largest private universal bank, in the burgeoning Philippines market.
This collaborative model allows AXA to combine its global insurance expertise, including sophisticated risk management strategies, with its partners' deep understanding of local market conditions. “They know their market, but they don’t have insurance expertise,” explained Mr. El-Shabrawishi. “We provide them with the global knowledge based on our operations in more than 50 markets.” This synergistic approach empowers local banks to develop successful insurance subsidiaries that cater to the specific demands of their corporate and retail customers.
In Thailand, AXA operates Krungthai-AXA Life Insurance (KTAXA) and AXA Thailand General Insurance, both under the leadership of Sally O’Hara, AXA’s Chief Executive for Southeast Asia and South Korea. Mrs. O’Hara reported double-digit growth in new life insurance business last year, mirroring the overall market expansion. General insurance has also experienced impressive growth, with six consecutive years of double-digit increases. This surge is attributed, in part, to increased awareness of health insurance needs in the post-pandemic landscape. Mrs. O’Hara highlighted AXA’s 15,000-strong distribution force, including highly trained AXA Prime agents equipped to handle all product lines, as key drivers of customer acquisition and retention.
Addressing a common pitfall of international companies, Mr. El-Shabrawishi emphasized AXA’s commitment to product diversification and flexibility. “One of the biggest mistakes some international players make is trying to push one-size-fits-all products in different countries,” he stated. AXA’s diverse product portfolio, including affordable health insurance options catering to various income levels, exemplifies this adaptive approach. Mrs. O’Hara further underscored this commitment by highlighting AXA EssentiALL, a dedicated unit focused on serving the underserved population with accessible and affordable insurance solutions.
Mr. El-Shabrawishi identified Southeast Asia as a key growth engine for AXA, citing the region’s low insurance penetration rate of around 5%—significantly lower than developed markets like France, where the penetration rate stands at 14%—and its burgeoning middle class. He expressed optimism about the region’s potential to outperform more mature markets, emphasizing the substantial room for growth. Beyond broader regional trends, Thailand’s aging population and Indonesia’s expanding young families present unique opportunities for AXA to address evolving insurance needs.
Despite Thailand’s currently slower economic growth, Mr. El-Shabrawishi maintained a long-term perspective, emphasizing the vast untapped potential of the market and the enduring customer need for protection. He also pointed to the ongoing digital transformation in Thailand, with increasing demand for digital insurance solutions across various segments, including travel, health, and property. While embracing this digital shift, AXA remains committed to maintaining its strong face-to-face distribution channels, recognizing the essential human element of the insurance business. This balanced approach, combining global expertise with local understanding, positions AXA to capitalize on the exciting opportunities presented by the evolving Southeast Asian insurance landscape.
