Asia Interview: Amelie Breitburd, CFO, Axa Asia

Digital quest
Digital is the key word on Breitburd's mind when reflecting on the priorities of this global giant in Asia, and it comes as no surprise. With its advent, digital brings about the opportunity to streamline processes, improve customer experiences and enhance personal data capture; and to create a digital company - you need a digital mindset.

Breitburd, pictured, says: "Axa is one of the leading insurers in the region and world when it comes to digital. The customer should be able to find us wherever they want depending on their culture, lifestyle and age. It could be at an agency, a branch, a bank, the internet or an app. The customer will look at isearch, ibuy, iclaim - the different moments of a policy."

The exact customer models will depend on the individual countries in the region - for example the insurer already has several strong bancassurance partnerships. Axa already has the capabilities for people to buy products from front page websites in all eight countries it serves.

Given the legacy systems of global insurers a significant investment is needed to make the move to a truly digital platform. The company already has 120 digital marketing operatives in Asia and Breitburd promises the following resources: "We are investing €1bn between 2013 and 2020 in digital globally in the next five years - this will have a significant impact in Asia. We want to leverage on technology to improve the customer experience."

She explains: "Today the customer decides. We want to be ready for them to find us wherever they are. Being a composite insurer allows us to be everywhere. We are making progress and we want straight through processing - a huge investment."

The French insurer has opened the 'Axa lab Asia' in Shanghai, and will open a further two later this year: a 'data innovation lab' in Singapore and an office for Axa Strategic Ventures in Hong Kong - which looks to invest in start-ups.

Breitburd says: "It is about investing in start-ups that are disruptive for the business."

The Shanghai lab will be led by Frank Desvignes, one of Axa's leaders in digital transformation, and will form partnerships with the "most forward-thinking companies" and look to detect and leverage emerging trends across the continent.

The Singapore lab will focus on data analytics to help foster research and development for Axa's offers and services. She says: "The digital lab in Singapore is focused on big data - so we can make sure our price is right and also we can focus on prevention."

Growing market share
Axa sees a key ingredient of success in the region as giving customers greater access to products.

Breitburt says: "We want to help people improve their lives including taking more risks - for example via travel - a key area for growth in Asia. This includes SMEs."

She continues: "In China it is not difficult to develop new products. We need to generate more awareness around the protection gap. Insurance is not part of their everyday life - not part of their mindset."

Across all its divisions and markets the insurer made €551m (£420m) of underlying earnings in its eight Asia markets last year. Within general insurance its premiums climbed to €1.1bn from €862m in 2014; underlying profits declined from €61m in 2014 to €59m last year, however net profits increased from €26m to €44m.

The figures include its general insurance operations in Hong Kong, Malaysia, Singapore and Thailand, and excludes joint operations in China, India, Indonesia and the Philippines (in addition to Japan and Korea which are kept separate).

In 2012 Axa acquired HSBC's Hong Kong and Singapore property P&C books which included distribution agreements in China, India and Indonesia. In 2014 the insurer bought 50% of motor insurer Tian Ping (now Axa Tianping) in a joint venture in China and has recently increased its stake in Bharti Axa in India to 49%.

Brietburd is not too concerned about any economic slowdown in the region or globally. She comments: "Even if you are to keep your market share constant you will grow. It is about having the right products and footprints. We have been growing around 15%."

Yesterday Axa's Asia CEO Jean-Louis Laurent Josi unveiled a new five year plan for the insurer to grow overall Asia profits in general, life and savings 60% by the end of 2020.

The insurer is well positioned to take advantage of the digital revolution but it will need a lot of hard work and a little bit of luck to succeed.

Post has launched its own Insuretech campaign and has a dedicated section on the website.