Insurer AXA has expanded its range of parametric insurance offers to small and medium enterprises (SMEs) and individuals with the launch of a new entity, AXA Global Parametrics – a move that builds on previous success to target greater potential for this product.
Driven by the success of AXA’s current parametric solutions, the operation’s objectives are to allow for quicker evolution of parametric insurance, expansion of customer reach, and to offer a platform to fuel blockchain innovation.
Tanguy Touffut, previously Global Head of Parametric Insurance at AXA Corporate Solutions, has been appointed to lead the new entity as Chief Executive Officer (CEO) of AXA Global Parametrics.
He begins his new role from March 1st, 2017, reporting to CEO of AXA Global P&C, Gaëlle Olivier.
Olivier commented that parametric insurance has been a high growth startup business over the last two years; “I am convinced it can scale up under the leadership of Tanguy Touffut. In line with Ambition 2020, AXA Global Parametrics will also contribute to the Group’s transformation through an enhanced customer experience, optimizing many steps in the traditional insurance process, and amplifying the scope of the insurable.”
The new entity will collaborate with the firm’s P&C community and Group Innovation team to design a broader range of parametric risk coverage, which the firm hopes will line it up for expansion into both mature and emerging markets.
AXA, Chief Innovation Officer (CIO), Hassan El Shabrawishi, holds high hopes for the new operation, expecting it to become “one of the key enablers for selected initiatives fuelled by the Innovation team with a strong focus on accelerating our blockchain ambition for a more transparent and seamless customer experience.”
The firm’s parametric operative arm has worked across 28 countries, offering solutions to sectors and organisations including weather-sensitive corporates in agriculture, renewable energy, construction, transportation, leisure and textiles, and international institutions and governments.
Asia has been touted as AXA’s key market for parametric insurance; the region has brought in an impressive 40% of its parametric revenues.
Parametric insurance makes payouts based on a parameter correlated to a client’s damages or losses; it can cover a wide variety of risks, particularly climate risk like adverse weather impact to business or protection against crop loss, and supports rapid payout post-event.