February 11, 2016
A new commitment to protect emerging middle classes
Although the share of emerging countries in world GDP is 40%, they account for only 17% of the insurance market. AXA is launching a global initiative to better protect the future middle classes in these countries, with the aim to promote their financial inclusion.
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With many existing offers being too costly, overly complex or simply not suitable, in emerging markets, there are still not enough insurance solutions available. The resulting lack of protection is particularly detrimental to the people with the lowest incomes, whose insurance coverage remains limited, despite their increasing need for protection.
The AXA Group is therefore working to better serve these people by providing innovative insurance solutions adapted to the particularities and wide diversity of emerging markets. By focusing on this population, for whom protection is still insufficient, the microinsurance industry has grown very rapidly in the past few years. There are an estimated 3 to 4 billion people in this market worth $30 to 50 billion.
In order to effectively respond to the specific needs of emerging economies, AXA also decided to increase its stake in MicroEnsure to 46%. The UK company MicroEnsure specializes in microinsurance and has 20 million customers in 17 countries. AXA will use the company’s platform to develop its offer of insurance products for consumers in emerging countries.
