Top 5
Despite its maturity, the insurance industry in Hong Kong continues to flourish, showing impressive revenue growth year-on-year. For the first half of the year, total gross premiums amounted to HKD 184.9bn, rising by 13.6 percent from the same period in 2014 – according to figures published by the Office of the Commissioner of Insurance (OCI).
Rated as the number one general insurer in Hong Kong (see Fig. 1), AXA GI is among the most innovative in town. By engaging frequently with customers and understanding how individual needs vary, AXA GI is able to provide the best customer service on offer in Hong Kong, while the company’s continuous product development and efforts to tap into technological advances in the field enable it to stay on top of the game. World Finance spoke with Chris Read, Chief Property and Casualty Officer at AXA Hong Kong, about what makes the company the territory’s best and how it achieves continual growth.
In Hong Kong we see digitalisation playing an increasingly important role in the industry
Could you tell us a little bit about AXA GI?
AXA GI is a general insurer in Hong Kong with steady and strong business growth every year. Following the acquisition of the general insurance business from HSBC Insurance (Asia), we have been rated as the number one general insurer in Hong Kong since 2012 based on gross written premium. As of December 31, 2014, our gross written premium reached HKD 3.65bn, which grew by 4.28 percent from 2013. Furthermore, the financial strength of AXA GI is internationally recognised; Fitch Ratings has given us an AA- Insurer Financial Strength rating. Our market leadership in property and casualty business puts us in an excellent position to leverage our multi-channel distribution capabilities in order to fully capture the vast business opportunities that arise from the growing demand for financial protection in Hong Kong. We offer a full spectrum of products for both individual and commercial customers, including, but not limited to, motor, household, health, accident and travel insurance, as well as comprehensive trade specific plans designed for corporates and small and medium-sized enterprises (SMEs).
How are your insurance products able to stand out in the market?
At AXA GI, our strategy has always been driven by customer demand and we aim to satisfy our customers’ protection needs in every stage of their lives. Over the year, we have redefined industry standards by driving differentiation and innovation in the market.
For commercial products, every single solution is tailored for the individual needs of the customer via a thorough underwriting process. Furthermore, we always ensure that all regulatory requirements and cover limits are met. While for individual packaged products, we constantly review our product offerings and cover limits in response to market demand and changing customer needs. For example, we extended benefits of travel insurance in response to the Outbound Travel Alert System introduced by the Security Bureau.
In order to meet the individual needs of customers, we provide options with varying levels of cover, as well as the option to upgrade to a higher-level plan at any time. We believe in the importance of listening to the voices of our customers and distributors and collecting their feedback on a regular basis – this is a core process in our product and service development.
How do you ensure that your customers receive an efficient service?
From the beginning, we have built a solid customer-centric culture at AXA. At the heart of everything we do, there are three core values: availability, reliability and attentiveness. Our primary focus is making it as easy as possible for customers to access our expertise and advice.
We organise regular training for our customer-facing staff and constantly challenge ourselves to enhance existing services, at the same time continuously reviewing and fine-tuning established rules and practices as our experience deepens. Take our claim process on motor insurance as an example; we recently reviewed and simplified our motor claims process in order to create a more satisfying customer experience. We achieved this by focusing on three areas: simplifying claims filling – our motor claim form is now one of the simplest and shortest in the market; expediting repair approval – we are the only insurer in town that can make a 24-hour motor claims service guarantee; and we always keep the customer informed on the claim progress through SMS communication. Given the success we’ve had in revamping our motor claim services, we have also conducted similar exercises in other business lines, such as marine cargo, personal accident, property, third party liability and travel.
What additional services are you committed to providing the public or your customers?
We continue to invest significantly to improve customer experience, which includes developing digital platforms to facilitate interaction with customers. One good example of this is the AXA@Work smartphone app, which allows our customers to check the status of their claims anytime and anywhere. Our innovation in digitalisation is solid proof of our commitment to customer centricity and how we aim to improve the customer journey.
At AXA GI, we all share the ‘born to protect’ commitment. We pride ourselves as ‘people protectors’ and take it upon ourselves to protect people beyond insurance. For example we present the ‘three-day swift claim’ service promise to fully support SME owners in protecting their businesses and their employees. Our influence extends from the products and services we offer, through to the way we support our communities and care for the environment. For example, we conduct a regular road safety survey to examine driver perceptions, behaviours and knowledge in relation to road safety issues, in order to promote safe driving and raise public awareness.
For four consecutive years we have also supported the Orbis Blindfold Lunch, an event to help students understand the importance of eye-care and encourage them to support the visually impaired around the world. Our unwavering commitment to corporate social responsibility has been recognised by the Hong Kong Council of Social Service as a ‘caring company’ for 10 consecutive years.
What are the greatest challenges and opportunities you face?
Hong Kong is a mature and dynamic market. According to the OCI, as of December 31 2014, there were 95 pure general insurers and 19 composite insurers, offering both long-term and general insurance products. Last year, the gross premiums of general insurance business in Hong Kong recorded a growth of 4.2 percent to $43.9bn from 2013. Overall, underwriting profit was maintained at $3bn, which is on a par with that of 2013. This single-digit growth rate reflects how the market in Hong Kong has matured.
Having said that, Hong Kong is still a competitive market with great potential. We have a strong commitment to the market and we will continue developing innovative solutions and service enhancements to differentiate ourselves from competitors. Integrating business portfolios and systems with HSBC has been one of the key challenges for us in the past two years, but it also poses a great opportunity for us to leverage the strength of two global financial companies in order to create more value for our customers and maintain growth.
We strive to maintain and strengthen our leading position in the market by offering innovative solutions and service enhancements that meet customer needs. We also aim to offer differentiated services to valued customers, as well as digital solutions for simple selling and easy to use services. Another objective is to deepen our penetration in the SME segments and strengthen our brand positioning as the preferred insurer in Hong Kong.
How are you adapting to industry trends in 2015?
In Hong Kong we see digitalisation playing an increasingly important role in the industry. Customers are looking for easy-to-manage services, therefore insurers have to invest in developing its digital platforms so as to enhance customer satisfaction and stay competitive in the market. Hence, we have been enhancing our digital and online distribution platforms in order to capture the vast opportunities that are arising from advancing technologies. Some examples include our online solutions for motor and travel insurance, as well as another smartphone application that we are about to launch.
What does the future hold for AXA GI?
Over the years, AXA GI has seen tremendous growth. Our long-standing history and comprehensive range of products, as well as our strong distribution networks, put us in a great position to continue achieving strong and profitable growth in Hong Kong. As people protectors, we are committed to putting our customers first and we will continue to deliver superior protection solutions that address their needs. With solid experience and sound track record, we strive to become the most preferred and trusted partner for our customers.
