AXA has indeed been looking forward to increasing it’s distribution of life insurance products via other sources other than through the registered individual agents ,brokers, financial advisors and financial planners. Banks have now been targeted as potential sources and means to distribute the life insurance products. This doesn’t come as quite a surprise primarily because Asia has been a target market for AXA to expand its business, as recently announced by the regional chief operating officer for AXA Asia Life.

Bank insurance tie ups are not a new thing in the competitive nature of the insurance market. There have been many such instances in the past. Some of the note worthy tie-ups has been -May bank with TM Asia, OCBC with Great Eastern, DBS with Aviva, Standard Chartered with Prudential, Citibank with Manulife. Some banks like HSBC has its own insurance unit do not tie up with a competitor’s products.

The probable way to go through the banks include tie ups with major banks and focusing on the health related and long term savings and insurance products. AXA Asia Life currently stands at a revenue base of $6.1 billion in the year 2009. The earnings are estimated to cross $500 millions. This has been possible due to the aggressive drive of the banks and tie up agents.

Tied-agents doing purely insurance business with one principal insurer have more competition ahead with banks stepping up their insurance business, following poorer sales from investments. Without any other perceived value-add, the environment may be tougher for insurance agents ahead in 2010 and 2011.

Original Article: 25 May 2010, Straits Times: AXA to expand S’Pore presence



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