June 16, 2020
Over 800 million people across 125 countries benefit from remittances sent by over 200 million of these overseas workers, who create a future of hope for the families.
In light of the effects of the coronavirus pandemic and its impact on economies worldwide, and particularly those living in more precarious situations, the UN Secretary-General called for global solidarity in responding to the crisis stating “remittances are a lifeline in the developing world – especially now”.
Indeed, global remittances to developing countries are projected to fall by US$ 110 billion in 2020, and not return to pre-pandemic levels for many years thereafter.
AXA has joined forces with UAE-based technology firm Democrance to improve financial inclusion and boost the development of inclusive insurance, targeting low- and middle-income individuals and families in general, and migrant workers in particular. Two programs to insure thousands of migrant workers in the United Arab Emirates have been launched in 2020 with the fintech Rise, which provides banking services for migrants and with the money transfer company Hellopaisa.
More globally, it is estimated that 3.5 billion people around the world are unable to access or afford social protection, and the partnership will target millions of individuals across the Middle East, Asia, Africa and Latin America. AXA and Democrance will work together to market and provide insurance products through digital channels and make it more affordable for customers.
Michele Grosso, Chief Executive Officer at Democrance, said: “Inclusive insurance products are primarily designed for those who do not have access to or cannot afford traditional insurance but are still- or especially- in need of social protection. Insurers are eager to provide products but have no way to access and service these consumers in ways that are cost efficient enough to keep premiums low. Digital technologies have really changed the game and levelled the playing field in this respect, lowering administrative and acquisition costs.”
Garance Wattez-Richard, Head of AXA Emerging Customers, added: “Four years ago AXA set up a business dedicated to protecting tomorrow’s middle class across emerging markets because we believe it to be one of the key paths to sustainable impact. We are confident that this partnership with Democrance will help us achieve our objective of inclusive protection for all, building upon the power of technology.”