AXA INSURING THE FUTURE
AXA, a leading insurance company, is pivoting towards commercial property and casualty business amidst industry disruption. This presentation outlines the challenges, opportunities, and strategies for AXA to leverage its market leader position and overcome obstacles. Through internal and external analysis, the presentation dives into core competencies, client profiles in emerging markets, and the best strategies to propel AXA into the digital future in the next 5 years, including recommendations and risk assessments.
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Presentation Transcript
AXA AXA INSURING THE FUTURE INSURING THE FUTURE PRESENTATION TO THE BOARD OF DIRECTORS ORT CONSULTING GROUP ISMAEL ALMANDOS LUCIA BACIGALUPI JOANNA PELUFFO CLAUDIA RODRIGUEZ
SITUATION WHERE YOU ARE NOW WHERE YOU WANT TO BE INSURANCE COMPANY PIVOTING TO COMMERCIAL PROPERTY AND CASUALTY BUSINESS FACING DISRUPTION OF INSUTECH FACING BAD RESULTS IN 2019 LOOKING TO ACCELERATE EXPANSION IN ASIA DEFINING A STRONG STRATEGY FOR THE NEAR FUTURE LEVERAGING MARKET LEADER POSITION TO ADDRESS THE CHALLENGES IN THE INDUSTRY ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
KEY QUESTION WHAT IS THE BEST STRATEGY FOR AXA TO TRANSFORM FOR THE DIGITAL FUTURE IN THE NEXT 5 YEARS? ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
INTERNAL ANALYSIS STRENGTHS WEAKNESSES LARGE CLIENT BASE (103M WORLDWIDE) CAPABILITY TO MEET CONSUMERS CHANGING NEEDS COMMITMENT TO RESPONSIBLE INVESTMENT GOOD AT LEVERAGING ACQUISTIONS STRONG CLIENT FOCUS SLOWER AT ADAPTING TO CHANGE BECAUSE OF SIZE ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
EXTERNAL ANALYSIS OPORTUNITIES THREATS RISE OF IOT AND IA TRENDS LACK OF ACCESIBLE AND AFFORDABLE SOLUTIONS IN EMERGING MARKETS HIGHLY UNDERINSURED MIDDLE CLASS IN ASIA PRICE-SENSITIVE COSTUMERS IN EMERGING MARKETS RISE OF SOCIALY AND ENVIRONMENTALLY CONCIOUS TRENDS STRONG COMPETITORS IN ALL SECTORS TECHNOLOGICAL REVOLUTION IN INSURANCE SOCIO POLITICAL TURMOIL POSSIBLE ECONOMIC TURMOIL ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
EMERGING MARKET CLIENT PROFILE INCREASINGLY MIDDLE CLASS PRICE SENSITIVE LOW RISK-AWARENESS SEEKING BETTER LIFE STANDARDS INCREASINGLY CONNECTED ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
CORE COMPETENCIES STRONG TRACKRECORD IN THE INDUSTRY DIVERSIFICATION OF SECTORS AND REGIONS LARGE CLIENT BASE WIDE PORTFOLIO OF PRODUCTS AND SERVICES ADAPTABILITY TO CHANGE AND RISK TAKING ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
CHALLENGES DIGITAL DISRUPTION IN THE INSURANCE INDUSTRY HAVE GREATER IMPACT IN THE ASIAN REGION SPEED UP INNOVATION TO DIFFERENTIATE THE PRODUCT PORTFOLIO OPTIMISING PROCESSES ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
ALTERNATIVES FOCUS ON CAR INDUSTRY: TRACK CONSUMERS DRIVING PATTERNS TO OFFER DIFFERENTIAL INSSURANCE PREMIUMS FOCUS ON LOGICSTICS AND TRANSPORT: TRACK COSTUMERS CARGO TO OFFER DIFFERENTIAL INSSURANCE PREMIUMS FOCUS ON PROPERTY: CREATE A NEW RENT INSURANCE PROGRAMME FOR TENNANTS & INSURANCE FOR CONSTRUCTION WORKERS FOCUS ON HEALTH: TRACK CONSUMERS HEALTH AND ACTIVITY TO OFFER DIFFERENTIAL INSURANCE PREMIUMS ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
ALTERNATIVES TARGET HEALTH PILLAR IN AXA NEXT USE DATA ANALYTICS AND WEARABLE (AI AND IOT) TO TRACK CONSUMER S BEHAVIOURS AND OFFER DIFFERENT INSURANCE FOCUS ON HEALTH: TRACK CONSUMERS HEALTH AND ACTIVITY TO OFFER DIFFERENTIAL INSURANCE PREMIUMS PREMIUMS ACCORDING TO THEIR PATERNS LEVERAGE EXISTING CLIENT INFORMATION IN EMERGING MARKETS HEALTH FACILITIES FOCUS ON EMERGING MARKETS IN ASIA: CHINA, INDIA, KOREA CREATE DIFFERENTIATED PRICES FOR PRICE SENSITIVE CUSTOMERS IN SECTOR ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
ALTERNATIVES TARGET MOBILITY PILLAR IN AXA NEXT FOCUS ON CAR INDUSTRY: TRACK CONSUMERS DRIVING PATTERNS TO OFFER DIFFERENTIAL INSSURANCE PREMIUMS USE DATA ANALYTICS AND SMART DEVICE (AI AND IOT) TO TRACK CONSUMER S DRIVING BEHAVIOURS TO OFFER DIFFERENT INSURANCE PREMIUMS ACCORDING TO THEIR DRIVING PATERNS FOCUS ON EMERGING MARKETS IN ASIA CREATE DIFFERENTIATED PRICES FOR PRICE SENSITIVE CUSTOMERS IN SECTOR ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
ALTERNATIVES USE SMART DEVICE TO TRACK ALL CARGO MOVEMENTS TO ENSURE THAT CLIENT HAS CARGO UPDATES IN REAL-TIME FOCUS ON LOGISTICS AND TRANSPORT: TRACK COSTUMERS CARGO TO OFFER DIFFERENTIAL INSSURANCE PREMIUMS AVOID ACCIDENTS SIMPLIFY INSURANCE CLAIMS BY PROVIDING TRACKABLE DATA CREATE DIFFERNTIAL PRICING ACCORDING TO CUSTOMERS TRACK RECORD ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
ALTERNATIVES LEVERAGE THE RISING TREND OF POPULATION SHIFT TO THE CITIES AND THE GROWING NUMBER OF LARGE BUILDINGS FOCUS ON PROPERTY: CREATE A NEW RENT INSURANCE PROGRAMME FOR TENNANTS INSURANCE FOR CONSTRUCTION WORKERS FOCUS ON EMERGING MARKETS IN ASIA CREATE TAYLOR-MADE PRICES FOR DIFFERENT CUSTOMERS INSURE CONSTRUCTION WORKERS TO HELP IMPROVE WORKING CONDITIONS ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
ALTERNATIVES FOCUS ON LOGISTICS AND TRANSPORT FOCUS ON CARS FOCUS ON HEALTH FOCUS ON PROPERTY ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
ALTERNATIVES FOCUS ON LOGISTICS AND TRANSPORT FOCUS ON CARS FOCUS ON HEALTH FOCUS ON PROPERTY PROBLEM SOLUTION FIT ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
ALTERNATIVES FOCUS ON LOGISTICS AND TRANSPORT FOCUS ON CARS FOCUS ON HEALTH FOCUS ON PROPERTY PROBLEM SOLUTION FIT SUSTAINABILITY (GOING GREEN ) ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
ALTERNATIVES FOCUS ON LOGISTICS AND TRANSPORT FOCUS ON CARS FOCUS ON HEALTH FOCUS ON PROPERTY PROBLEM SOLUTION FIT SUSTAINABILITY (GOING GREEN ) PROFITABILITY ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
ALTERNATIVES FOCUS ON LOGISTICS AND TRANSPORT FOCUS ON CARS FOCUS ON HEALTH FOCUS ON PROPERTY PROBLEM SOLUTION FIT SUSTAINABILITY (GOING GREEN ) PROFITABILITY ACHIEVABLE WITH CURRENT RESOURCES AND CAPABILITIES ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
ALTERNATIVES FOCUS ON LOGISTICS AND TRANSPORT FOCUS ON CARS FOCUS ON HEALTH FOCUS ON PROPERTY PROBLEM SOLUTION FIT SUSTAINABILITY (GOING GREEN ) PROFITABILITY ACHIEVABLE WITH CURRENT RESOURCES AND CAPABILITIES TACKLING DISRUPTION RISK ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
ALTERNATIVES FOCUS ON LOGISTICS AND TRANSPORT FOCUS ON CARS FOCUS ON HEALTH FOCUS ON PROPERTY PROBLEM SOLUTION FIT SUSTAINABILITY (GOING GREEN ) PROFITABILITY ACHIEVABLE WITH CURRENT RESOURCES AND CAPABILITIES TACKLING DISRUPTION RISK ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
RECOMMENDATION FOCUS ON HEALTH: TRACK CONSUMERS HEALTH AND ACTIVITY TO OFFER DIFFERENTIAL INSURANCE PREMIUMS FOCUS ON CAR INDUSTRY: TRACK CONSUMERS DRIVING PATTERNS TO OFFER DIFFERENTIAL INSSURANCE PREMIUMS ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
WHY WE CHOSE THESE OPTIONS DIGITAL DISRUPTION IN THE INSURANCE INDUSTRY SPEED UP INNOVATION TO DIFFERENTIATE THE PRODUCT PORTFOLIO HAVE GREATER IMPACT IN THE ASIAN REGION OPTIMISING PROCESSES LEVERAGE NEW TECHNOLOGIES AND DATA ANALYTICS TO DIFFERENTIATE PRODUCTS PROVIDE BETTER TAYLORED PRODUCTS TO ASIAN CLIENTS LEVERAGING AI TO ASSES RISK AUTOMATICALLY ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
I IMPLEMENTATION MPLEMENTATION
IMPLEMENTATION OPERATIONS MARKETING TECHNOLOGY ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
IMPLEMENTATION AQUIRE BEWELL (FRENCH HOMECARE COMPANY) BLOOD PRESSURE GLUCOSE SENSOR HEART RATE THROUGH SMARTWATCH AQUIRE QUALABS (DATA SCIENCE COMPANY) TO LEVERAGE EXISTING PATIENT DATA AQUIRE SAFE DRIVECAR SAFETY TECH COMPANY ONBOARD UNITS (GPS AND CAMERA) CREATE NEW UNIT TO RECRUIT AND TRAIN REPAIR SHOPS RELOCATE THOSE COMPANIES TO SILICON VALLEY PARTNERSHIP WITH TOYOTA, TATA AND OTHER PARTNERSHIPS WITH LOCAL CAR REPAIR SHOPS PHASES: 1) CHINA, 2) INDIA, 3) SOUTH KOREA OPERATIONS ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
IMPLEMENTATION RISK AWARENESS CAMPAIGNS SAFE DRIVING COURSES AT HIGHSCHOOL PREVENTIVE HEALTHCARE IN PRIMARY SCHOOLS BOOKLET FOR HOSPITALS TV ADDS PUBLIC TRANSPORT ADDS PARTNERSHIPS WITH GOVERNMENT PROMOTIONAL CAMPAIGN BOLLYWOOD MOVIES PARTICIPATION KOREAN AND CHINESSE DRAMAS RADIO CAMPAIGNS SOCIAL RESP. INITIATIVES TARGETING CLIMATE CHANGE MARKETING ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
IMPLEMENTATION HEALTHCARE CONTINUOUS MONITORING OF CUSTOMERS HEALTH VARIABLES THROUGH SMARTWATCH MONITORING OF GLUCOSE FOR CUSTOMERS WITH DIABETES THROUGH SPECIFIC DEVICE MONITORING BLOOD PREASSURE FOR CUSTOMERS WITH HYPERTENSION THROUGH SPECIFIC DEVICE AGGREGATION OF INFORMATION FOR RESEARCH AND BIG DATA CAR INSURANCE CONTINUOUS MONITORING OF DRIVER BEHAVIOR KNOW CITY TRAFFIC PATTERNS FOR PREDICTIVE ANALYSIS R&D OF NEW SOLUTIONS APPLICABLE FOR THIS VERTICALS IN SYLICON VALLEY TECH ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
GANTT Q1 Q2 Q3 Q4 YEAR 2 YEAR 3 YEAR 4 YEAR 5 OPERATIONS ACQUISITIONS RELOCATE COMPANIES BUILD NEW OPER TEAM MARKETING RISK AWARENESS CAMPAIGN PROMOTION CAMPAIGN TECH REBRAND AND CONSOLIDATE PLATFORMS ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
FINANCIALS FINANCIALS
ASSUMPTIONS TAX RATE 25 % SELF FINANCING INFLATION 5% RRR 20% NWC 10% ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
PROJECTIONS HEALTH GROWTH RATE 20% CAR INSURANCE GROWTH RATE 40% ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
PRICING CAR INSURANCE ANNUAL AVERAGE TOTAL COVERAGE HEALTH INSURANCE COST $ 200 - $ 3500 $ 1200 ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
PROJECT HIGHLIGHTS IRR 24% NPV $ 812 ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
MAIN COST DRIVERS CASH FLOW IS AVAILABLE IN ANNEX ALL NUMBERS IN MILLIONS ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
MAIN SOURCES OF INCOME CASH FLOW IS AVAILABLE IN ANNEX ALL NUMBERS IN MILLIONS ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
MAIN SOURCES OF INCOME CASH FLOW IS AVAILABLE IN ANNEX ALL NUMBERS IN MILLIONS ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
WHAT IF HEALTH GROWTH RATE 10% CAR INSURANCE GROWTH RATE 20% ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
PROJECT HIGHLIGHTS IRR 4% NPV $ - 2.700 ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
RISKS AND MITIGATIONS RISK MITIGATION NEW REGULATIONS IN EMERGING MARKETS DIVERSIFY MARKETS LEVERAGE AXA LABS FOR IN HOUSE DEVELOPMENT DELAY IN ACQUISITIONS INSURTECH MENACE ACQUISITIONS ANALYSIS ALTERNATIVES RECOMMENDATION IMPLEMENTATION FINANCIALS RISKS
CONCLUSIONS WHERE YOU ARE NOW WHERE YOU WANT TO BE INSURANCE COMPANY PIVOTING TO COMMERCIAL PROPERTY AND CASUALTY BUSINESS FACING DISRUPTION OF INSUTECH FACING BAD RESULTS IN 2019 LOOKING TO ACCELERATE EXPANSION IN ASIA DEFINING A STRONG STRATEGY FOR THE NEAR FUTURE LEVERAGING MARKET LEADER POSSITION TO ADRESS THE CHALLENGES IN THE INDUSTRY FOCUS ON HEALTH: TRACK CONSUMERS HEALTH AND ACTIVITY TO OFFER DIFFERENTIAL INSURANCE PREMIUMS FOCUS ON CAR INDUSTRY: TRACK CONSUMERS DRIVING PATTERNS TO OFFER DIFFERENTIAL INSURANCE PREMIUMS
THANK YOU! THANK YOU! WE NOW WELCOME ANY QUESTIONS YOU MAY HAVE WE NOW WELCOME ANY QUESTIONS YOU MAY HAVE ORT CONSULTING GROUP ISMAEL ALMANDOS LUCIA BACIGALUPI JOANNA PELUFFO CLAUDIA RODRIGUEZ
CASH FLOW 0 1 2 3 4 5 Inc in sales Inc in costs Inc in interests Inc In taxable income Inc in NWC Recovery of NWC Inc in Net income $ (10,450.00) $ - 4,500.00 $ (1,230.00) $ 5,050.00 $ (1,081.50) $ 5,675.00 $ (1,135.58) $ 6,386.50 $ (1,192.35) $ 7,197.95 $ (1,251.97) $ 0 0 0 0 0 0 (10,450.00) $ $ 3,270.00 $ (450.00) $ 3,968.50 $ (505.00) $ 4,539.43 $ (567.50) $ 5,194.15 $ (638.65) $ 5,945.98 $ - 0 2,161.15 $ 8,107.13 $ (10,450.00) $ 2,820.00 $ 3,463.50 $ 3,971.93 $ 4,555.50 $
DATA 0 1 2 3 4 5 Tax Loan Financing rate RRR Inflation NWC 25% Acquire Bewell Acquire Qualabs Acquire Safe Drive Relocation costs Establish Partner Local Repair shop network Inc in operatig costs emerging markets Inc in operating costs (Tech) Marketing (2,000.00) $ (500.00) $ (1,500.00) $ 6% 20% 5% 10% $ (500.00) $ (200.00) $ $ $ (100.00) (800.00) (3,150.00) (105.00) $ (800.00) $ (3,307.50) $ (110.25) $ (800.00) $ (3,472.88) $ (115.76) $ (800.00) $ (3,646.52) $ (121.55) $ (800.00) $ (3,828.84) $ (3,000.00) $ Salary in China No of employees Marketing cost growth 0.02 5000 5% Total (7,200.00) $ $ (4,550.00) (4,212.50) $ (4,383.13) $ (4,562.28) $ (4,750.40) $ No of engineers Cost of an engineer Cost of tech platform Sales growth (Healthcare) Sales growth (Car insurance) 1500 -0.2 -500 20% 40% Price per car Number of cars 0.0012 1,500,000.00
