Transforming AXA for Success: A Strategic Consulting Presentation

Muenster Consulting presents a strategic plan to address key issues faced by AXA in a highly competitive market. The plan includes a business model shift, analysis of industry trends, and the need for innovation to stay competitive. With a focus on expanding digital offerings and acquiring new customers, the goal is to revolutionize the health care system and increase market share, benefiting AXA's reputation.

• Strategic Consulting
• Market Analysis
• Business Transformation
• Competitive Landscape
• Digital Innovation

carradine_y Follow

Uploaded on Sep 22, 2024 | 0 Views

Download Presentation

Please find below an Image/Link to download the presentation.

The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.

Presentation Transcript

1. Muenster Consulting Muenster Consulting AXA on demand AXA 2025 Muenster Consulting presenting to the upper management board of AXA

2. Agenda Muenster Consulting Carolin I Management Summary Theresa II Analysis Bastian III Implementation Robin IV Finance Carolin V Conclusion 2

3. Muenster Consulting Management Summary Carolin 3

4. Key Issues Muenster Consulting Easy market entry for new customers Behind in tech trends High dependency in capital markets Management Summary Analysis Implementation Finance Conclusion

5. Key Issues Muenster Consulting Easy market entry for new customers How can AXA keep being competitive and transform the health market? Behind in tech trends High dependency in capital markets 5

6. A business model shift is needed Muenster Consulting Strategy Shift of core business model Expansion of digital offer Acquisition of new customers Outcome Revolutionize health care system in the Asian market Increase market share Benefit reputation 6 Management Summary Analysis Implementation Finance Conclusion

7. Muenster Consulting Analysis Theresa 7

8. Axa faces a highly competitive market Muenster Consulting AXA does not only compete with insurance companies but also with banks, asset management companies, investment advisers and other financial institutions The trends in the industry is challenging the competitive landscape Global multi-line insurance majors Wave of Mergers & Acquisitons Impact of technology (AI, IoT, Blockchain) Strong regional players Digital-first insurtech companies The rise of insuretechs 8 Management Summary Analysis Implementation Finance Conclusion

9. Axa forces a highly competitive market Muenster Consulting AXA does not only compete with insurance companies but also with banks, asset management companies, investment advisers and other financial institutions The trends in the industry is challenging the competitive landscape How can AXA create a unique selling point to outstand the competitors? What should AXA focus on? Global multi-line insurance majors Wave of Mergers & Acquisitons Impact of technology (AI, IoT, Blockchain) Strong regional players Digital-first insurtech companies The rise of insuretechs 9

10. Looking ahead, AXA has several decisions to make Muenster Consulting B2B North America Health Banking Business Where? Focus Property & Casualty Asia Life & Savings B2C Asia Asset Management 10 Management Summary Analysis Implementation Finance Conclusion

11. First, focus on the health sector Muenster Consulting Why? Urgency Health Customer needs Banking High growth potential Focus Property & Casualty Lock-in effect possibility Life & Savings Asset Management 11 Management Summary Analysis Implementation Finance Conclusion

12. First, focus on the health sector Muenster Consulting Set a focus on one sector to get specialized and fulfill customer needs. Take advantage of the urgency factor of health. Use the lock-in effect and the up-selling possibilities. Urgency Health Customer needs Banking High growth potential Focus Property & Casualty Lock-in effect possibility Life & Savings Asset Management 12

13. Focus on the B2C sector Muenster Consulting Why? Changing customer needs B2B High growth potential Mobile first Business Range Economies of scale B2C 13 Management Summary Analysis Implementation Finance Conclusion

14. There is a shift in the value proposition due to changing customer needs Muenster Consulting Traditional Conservative Built on trust and caution Stability Accuracy Reliable claims payment Policy renewals New needs INNOVATION Choice Flexibility Simplicity Personalization 14 Management Summary Analysis Implementation Finance Conclusion

15. There is a shift in the value proposition due to changing customer needs Muenster Consulting Traditional Conservative Built on trust and caution Stability Accuracy Reliable claims payment Policy renewals New needs INNOVATION Choice Flexibility Simplicity Personalization Focus on the changed customer needs like flexibility, personalization and simplicity. Built up a unique selling point for customers. 15

16. Alternatives Muenster Consulting Why? Emerging market North America Middle class is increasing Demand for insurances and education about it Asia Where? Lower competition than in Europe or North America Easy entry to Chinese market due to joint venture with the government Europe 16 Management Summary Analysis Implementation Finance Conclusion

17. Alternatives Muenster Consulting Emerging market North America Take advantage of the emerging market in Asia. Start in China Middle class is increasing Demand for insurances and education about it Asia Where? Lower competition than in Europe or North America Europe 17

18. AXA has several alternatives which need to be looked with regard to certain criteria Muenster Consulting Focus on Property & Casualty Focus on Life & Savings AXA on demand Sustainability Future potential Urgency Financial impact 18 Management Summary Analysis Implementation Finance Conclusion

19. Looking at alternatives gives a clear picture Muenster Consulting Focus on Property & Casualty Focus on Life & Savings AXA on demand Sustainability Future potential Urgency Financial impact 19 Management Summary Analysis Implementation Finance Conclusion

20. Looking at alternatives gives a clear picture Muenster Consulting Focus on Property & Casualty Focus on Life & Savings AXA on demand Sustainability Future potential Urgency DEALBREAKER DEALBREAKER Financial impact 20 Management Summary Analysis Implementation Finance Conclusion

21. AXA on demand: the way to go Muenster Consulting Focus on Property & Casualty Focus on Life & Savings AXA on demand Sustainability Future potential Urgency DEALBREAKER DEALBREAKER Financial impact 21 Management Summary Analysis Implementation Finance Conclusion

22. AXA on demand: the way to go Muenster Consulting Focus on Life & Savings Recommendation Focus on Property & Casualty AXA on demand Creating an on-demand B2C insurance service in the Asian market in order to fulfill the changing customer needs. Sustainability Future potential Urgency DEALBREAKER DEALBREAKER Financial impact 22

23. Muenster Consulting Implementation Bastian 23

24. Our strategic roadmap targets an on- demand insurance in Chinese health sector Muenster Consulting 2020 2021 2022 2023 2024 2025 Health sector network in China M&A of on- demand Insurtech Going life on-demand service Further roll-out globally Health Identify cooperation partner Identify further growth potential Introduce Insurance service to partners customers Platform economy Identify cooperation partner (FANG) Built up health sector network in China Business continuity for SMEs Going life on- demand service Further roll-out globally Built up health sector network in China M&A of on- demand Insurtech Going life on- demand service Further roll-out globally Mobility 24 Management Summary Analysis Implementation Finance Conclusion

25. What is on-demand insurance? Muenster Consulting On-demand insurance: Customer can book insurance, whenever it is needed. Booking completed within minutes through an mobile app or web. Value proposition: Customer can book insurance on-demand whenever he needs it Stream-lined and fast booking process through app 25 Management Summary Analysis Implementation Finance Conclusion

26. The target for on-demand insurance will be Slice Muenster Consulting Built up health sector network in China M&A of on- demand Insurtech Going life on- demand service Further roll-out globally Why M&A? Measures 1. Time pressure (own development takes longer) 2. Difficult to find talents for own development 1. Identify on-demand service provided (Target: Slice) 2. Due diligence (financial, legal and commercial) 3. Signing & Closure 26 Management Summary Analysis Implementation Finance Conclusion

27. Existing joint-venture in China can be used for setting-up health sector network Muenster Consulting Built up health sector network in China M&A of on- demand Insurtech Going life on- demand service Further roll-out globally Employees can be used for setting up cooperation with health sector network Cooperation is likely because of good relationship to Chinese government Employee base needs to be expanded and trained On-demand insurance will be introduced to health sector AXA Tianping joint-venture can be used as basis for expansion to China 27 Management Summary Analysis Implementation Finance Conclusion

28. On-demand insurance will lock in customers and deliver upsell potential Muenster Consulting Built up health sector network in China M&A of on- demand Insurtech Going life on- demand service Further roll-out globally On-demand insurance will be introduced to B2C market via hospitals Customers can book health insurance within minutes through app Lock-in of customers through contract running two years Up-selling potential of other insurances through application (property and casualty) Nurturing of former customer base within app Price discounts for longer contract run-time 28 Management Summary Analysis Implementation Finance Conclusion

29. On-demand insurance can be scaled and rolled-out to other countries Muenster Consulting Built up health sector network in China M&A of on- demand Insurtech Going life on- demand service Further roll-out globally On-demand service is highly scalable and can be rolled-out to other countries in Asia and worldwide Target on emerging countries because rising middle class Market entry can differ per market (e.g. hospitals in China) 29 Management Summary Analysis Implementation Finance Conclusion

30. Timeline for introduction of on-demand insurance to Chinese market Muenster Consulting 2020 2021 2022 2023 2024 2025 Impact Knowledge acquisition Identify M&A targets Pursue M&A CAPEX up App development Digitization Set-up infrastructure and org in Chinese JV CAPEX up Built up health sector network in China OPEX up Roll-out of on-demand insurance Revenue up 30 Management Summary Analysis Implementation Finance Conclusion

31. Muenster Consulting Finance Robin 31

32. KPIs Muenster Consulting Go-live of insurance program in 2022 Total investment required until 2025 20B$ Break-even in Revenue from Asian market in 2025 17B$ 2025 Scaling potential of AXA Tianping to cover 15% Of Chinese population by 2025 Free cashflows from Asian market by 2025 132M$ Gross margin in 2025 Revenue share from Asian market by 2025 16% 5% 32 Management Summary Analysis Implementation Finance Conclusion

33. Revenue structure Muenster Consulting In M$ 10,000 8,000 6,000 4,000 2,000 - 1 2 3 4 5 6 Health Life & savings Property & casualty 2020 33 Management Summary Analysis Implementation Finance Conclusion

34. Risks and Mitigations Muenster Consulting Urgency ? ! I III I. Networking with health sector fails I. Already excising Joint Venture with government II. Customer do not adopt offers II. Urgency will at some point enforce actions II III. Preferred M&A target not acquirable III. Strong excising cash reserves and own capabilities (Kamet) Importance 34 Management Summary Analysis Implementation Finance Conclusion

35. Muenster Consulting Conclusion Carolin 35

36. Question 1 Muenster Consulting Question: How should AXA advance on its payer-to-partner journey? What should be the strategic roadmap and targets for AXA Next? Answer: Changed customer needs (e.g. choice, flexibility, simplicity) demand new products. Therefore, AXA needs to offer innovative insurance services to customer. In introducing on-demand insurance customer needs are fulfilled. 36 Management Summary Analysis Implementation Finance Conclusion

37. Question 2 Muenster Consulting Question: How could AXA speed up innovation to create new products/ services/ experiences that would differentiate it in increasingly fluid society and marketplace? Answer: Innovation process can be speeded up by acquiring Insurtech start-ups like Slice for on-demand insurance. 37 Management Summary Analysis Implementation Finance Conclusion

38. Question 3 Muenster Consulting Question: What could AXA do in order to have a greater impact on the Asian market? Answer: Introduce on-demand insurance in health sector in order to reach middle class in China (and Asia) and leverage the upsell potential of other insurance products. 38 Management Summary Analysis Implementation Finance Conclusion

39. Question 4 Muenster Consulting Question: In what ways must the company long-established processes and ways of working change to adapt to the new realities of the digital world? Answer: Employee base in Chinese JV has to be expanded and also trained to ensure sustainability. New products and distribution channels like on- demand insurance through a mobile app differ from current product portfolio. Therefore, change management is necessary. 39 Management Summary Analysis Implementation Finance Conclusion

40. Muenster Consulting Monday Morning Actions Setting up project team Identify M&A target Develop Algorithm 40 Management Summary Analysis Implementation Finance Conclusion

41. Muenster Consulting Appendix 41

42. Revenue structure Muenster Consulting 2020 2,000 2021 2,100 2022 2,604 24% 6,181 2023 3,594 38% 6,428 2024 5,139 43% 6,814 2025 8,016 56% 7,359 Health Growth rate Life & savings Growth rate Property & casualty 5% 6,000 6,060 1% 2% 4% 6% 8% 1,300 1,339 1,406 1,518 1,761 2,272 Growth rate 3% 5% 8% 16% 29% Total revenue Asia Share of total revenue 9,300 9,499 10,191 10% 11,540 11% 13,714 13% 17,648 16% 9% 9% Total revenue AXA 103,000 104,000 105,000 107,000 109,000 111,000 42

43. Revenue structure Muenster Consulting 2020 9,300 8,742 558 2021 9,499 8,929 570 2022 2023 2024 2025 Total revenue Asia Operative costs Gross profit 10,191 9,987 204 11,540 11,252 289 13,714 13,166 549 17,648 16,765 882 Gross margin 6% 6% 2% 2.50% 4.00% 5.00% Investments M&A and App development 7000 1000 1000 500 250 250 AXA Tianping expansion 500 2500 5000 1000 500 500 Free cashflows (6,942) (2,930) (5,796) (1,211) (201) 132 43

44. Muenster Consulting Thank you for your attention! 44