101106 conference V01

AXA Experiences in

Bancassurance development

100908 C10 SC8 V01

1

Antonio Marchitelli

AXA Worldwide

57countries

216 000

2

216 000employees

96 000 000clients

AXA Worldwide KPIs

Revenues(billions €)

Net Income(millions €)

3

Underlying earnings(millions €)

AXA Worldwide KPIs

2009 Revenues by geographical area

4

AXA Worldwide KPIs

Evolution of AXA Share(* Indice STOXX Insurance)

5

What does the bancassurance market look like?

A fast growing market…+16% annual growth between 1998-2007

From 10% insurance market share to 20% between 1998-2007

…dominated by Life & Savings……dominated by Life & Savings…87% of the market

…very specific per countryCaptive marketsOpen architectureLimited architecture

UKBelgiumGermany

Switzerland63bn€

USJapan

Private Banks

97bn€

FranceSpainItaly

151bn€

3 main bancassurance products segments

Affluent

Pure protection and savings

7

Insurance

as bundled

Insurance

as additional

service

Insurance

as product

Value generation

Mass credit protection(i.e. cash loans)

Affluent packages(i.e. package accounts)

and savings(i.e. term life,accumulation)

5 key strategic levers for success in bancassurance

Operations

� Products - Tailored products for each customer segment. Market leader with above average product development cycle

� Access and operational support given to banks - Open IT platform with access to customized product selection and reporting

Organization

� Customer centricity & flexibility - Dedicated distribution network with dedicated infrastructure and governance system from other distribution channels

� Availability of key management information & decision making tools � Profitability indicators identified by each partner bank, monitored on an ongoing basis

Market best practicesMarket best practicesStrategic leverStrategic lever

8

Operations� Partner training and sales support - Best in class training centre and flexible sales support to cover

all partners� Back-office support - Centralized function with well-trained operators to answer all product enquiries

covering for all partners

Performance management

� Management Information - Real time reporting capabilities� Relationship management - Frequent engagement to build a strategic relationship with sales

targets� Remuneration - Incentives are strategically aligned with value creation

Infrastructure� Administrative workflow - Fully integrated administrative support, creating a 'single view' for the

customer.� IT Platform - Flexible IT platform dedicated for bancassurance operations

Partnerships� Partnership strategy - Global methodology for new business and key account management with

regular reporting� Negotiation capabilities - Global standardized approach to negotiations and partnerships

Specific tailored business models

Bundled sales

Face-to-face sales of

products not linked to

Alternative sales channels

Head office under- written policies sales

� For business risks which require the involvement of

individuals

Corporate

9

Bundled sales optional for customers

linked to banking offer

� Distribution opportunities created through sales of a banking product through “face-to-face” channel

� Recall actions

� Classic “Stand-Alone” Offer (i.e. L&S. P&C and Life Risk, Motor, Pension)

� Protection tool� Pension tool

� Direct from call centre (outbound) of "bundled" products (recall actions)

� Telemarketing of bank customers with specific "stand alone" products

� Direct on the Bank Internet site

� Other alternative channels

involvement of underwriting department (analysis and assessment of the Customer's needs)

� Contractual agreement between the insurer and the Policyholder (i.e. GMPS, Businesses, Associations) for the benefit of people linked to the policyholder under a contract of employment or other ties

Automatic bundled sales

� Coverages sold automatically with banking product

Excellent quality of service

Knowledge of the Client

� Know and analyse customers and market needs

Objective

� Identification, for each segment, of "moments of truth"

� Translation of the "voice of customer" into an improvement of processes related to "critical to quality" points

Operational implications

10

Operational excellence

Communication to the market

How excellent quality of service may be achieved?

� Guarantee the operational excellence of each line of business

� To identify differentiating process and make them excellent in terms of delivered service

� Communicate commitments and results to customers and to the market

� To provide external communications (advertising campaigns, new media, Consumer associations)

� To send specific communications per processes focused on customer segment

Listening…

Voice of “Market” …

� “ … large uncovered protection needs”

� “ … more clarity on documents content and in

Voice of Client …

� “ we need stronger specialist support from the

Voice of Distributor …

11

Source:- AXA Protection Report- Context Document Strategic Plan

protection needs”

� “ … protection gaps especially among young families and for the fourth age needs ”

� “retirement planning increases importance”

documents content and in the correspondence”

� “after the purchase, I have not had any other contact”

Source:- AXA MPS VOC Researches- Customer Scope

� “I will appreciate more flexibility within my policy”

� “for first: innovation and profitability”

Source:- AXA MPS VOD Research- “Selling Best practice” analysis

specialist support from the Bank and the Company”

� “… important is availability, training and supports”

Behaving ...

We genuinely and proactively commit ourselves to be ...

12

Behaving...

We genuinely and proactively commit ourselves to be ...

13

Behaving...

We genuinely and proactively commit ourselves to be ...

14

Communicating...

15

Thank you

Any questions?Any questions?

16