The AXA way – Improving Quality of Services

Presented by:-

Ketan ThakurSwati DheshmukhAshrit MehtaArpit VishnoiBhanu Partap

Case introduction

AXA is a French global company headquartered in Paris.

Engaged in life health insurance and investment management.

Operates in Western Europe ,North America and Asia-Pacific and Middle-East.

In 1988, merger between AXA and Company Du Midi ,

In the same year AXA got listed in Paris stock exchange.

It has 42 subsidiaries ,1600 employees and 4000 general agents.

Its turnover is around $45 million(US).

In 1994, AXA established AXA Asset management in Europe and later renamed it as AXA Investment Managers.

In 1996, AXA came out with an American Depositary receipts and got listed in New York Stock Exchange.

In 1999, the acquisition of Guardian Royal Exchange made AXA the largest player in Ireland non-life Insurance industry.

This group encompasses 5 operating business segment—

Life & Savings -This product segment offers a wide range of product for individuals and group. Includes life, health, saving and retirement related products.

Property and Casualty- Includes automotive, homeowners, houshold property for small to medium sized companies.

International Insurance- corporate solutions

Asset Management- specialist teams who look after the activities in western Europe, United states and Asia Pacific.

Other financial services - Includes cash flow management, bank account services to AXA-clients .

AXA-Business segment

Problems In 2001, economic slow down due to which decline in corporate earnings.

In the life insurance segment, insurance companies faced pressure on their investment margins and low fees on universal life insurance products.

Poor economic conditions in Japan adversely affected the consumer confidence in financial products.

Due to global recession in 2001 AXA revenues dropped by 6.25% compared to 2000.

AXA had to deal with several management issues, legal issues, capital allocation, integrating people and process due its merge with different companies

Building

the global brand

The dmaic principles

• D - Define• M - Measure • A - Analysis• I - Improve • C - Control

DMAIC PRINCIPLE- THE AXA WAY

Implementation @axa

• D – identification of complaints• M – audit of a sample of payments• A – instance of inaccurate payments and the

causes of mistake• I – correct commission rates,• C - query system

Customer focus Fact Based Method

Listening to the voice of the customers(VoC) Data Driven approach

Improving processes performance to meet customer key measures identified Expectations

Continuously listening to VoC Employee ownership

Transfer to tools and method to systematically Control and act on the empowering employees performance. to act on the performance

Building a customer and performance of their processesOriented culture.

Key measures

EMPLOYEE OWNERSHIP - AXA way Being a service industry :-

AXA considered its employees as its most valuable asset and believed in keeping them motivated.

AXA kept its employees informed about the strategies and objectives of the group.

AXA had been conducting scope surveys for its employee to measure employee satisfaction.

Proper work environment .

CONTINUOUS IMPROVEMENT

Regular customer feedback & incorporating it into its products and services across the organization.

AXA Ireland started “Mad House” Program

“VOC” was used by AXA to introduce several new products. AXA introduced Multihelp(Germany), comprising of four different

insurance products. Driving Help -insurance to drivers Travel help -loss cause due to flight delay Home Help -security services Insurance according to the mileage estimate(Italy)

BENEFIT OF THE IMPLEMENTATION OF “AXA WAY”

• Ranked as most preferred company.• 23 companies accounted 90 percent of the

growth revenues.• Customer satisfaction• Customer retention• Annual benefits-technical gains, productivity

gains, reduction in general expenses, incremental revenues, cost reduction

• Wide range of the product

Changes • In a span of one year 200 ideas were presented of which 20 were

implemented.• Scope survey score increased from 36 in 2003 to 47 in 2005.• Customer satisfaction on servicing increased from 64 to 69

percent, and in customer satisfaction on selling , it increased from 64 to 79 percent

• Customer retention in Japan, surrender rate(10.6% in 2002 to 6.6% in 2004), reinvestment rate for maturities in Portugal(48% in 2004 to 57% in 2005), reinvestment rate in Italy(27% in 2004 to 44% in 2005) & in Spain(23% in 2004 to 42% in 2005)

• Increase in annual benefits € 38 million(2003) to € 200 million(2006)

Thank you !!!!!!