Coping with evolving risks

Today, many citizens - individuals, professionals, public decision-makers - are questioning the insurability of our world, or sometimes simply that of their home. Can you explain why AXA France, and particularly the Property & Casualty Insurance Business activities, have made prevention a strategic pillar?

Today, numerous activities and personal, professional, and business assets are insurable and insured thanks to risk pooling, the proper setting of protection levels and thus pricing, as well as the strengthening of prevention.

This is precisely what prevention and preservation measures for their assets allow, such as the installation of smoke detectors in homes, automatic fire suppression systems in businesses, or the protection of employees during their professional activities. Our priority is to enable access to insurance for as many people as possible.

To better anticipate risks, imagine adequate prevention solutions for our insured, and adapt our offers, we actively collaborate with AXA Climate and the Digital Commercial Platform to make the most of new technologies.

Cyber risk, while not new, is on the rise, particularly due to artificial intelligence. Are French SMEs ready, in your opinion? Are they particularly targeted compared to other European countries?

Cyber risk is today one of the major concerns for businesses, ranking third in global fears (Future Risk Report 2024).

Large companies are increasingly protecting themselves through new technological tools and raising awareness among their employees, which is essential.

Nearly one in two companies in France reported at least one cyberattack in 2024 (OpinionWay survey for CESIN). While large companies are accustomed and protected, SMEs are vulnerable and increasingly targeted. At this stage, only 3% of SMEs are insured, indicating a lack of awareness of this risk.

At the European level, states are becoming aware of the importance of protecting their economies against this risk. The NIS2 directive adopted by the European Union strengthens cybersecurity requirements for companies operating in critical sectors (energy, health, transport, digital infrastructure, etc.).

The geopolitical context also increases exposure to cyber risks: major events such as the Olympic Games or certain geopolitical tensions can trigger waves of attacks, whether motivated by financial logic through ransomware or by economic destabilization objectives. Moreover, the capabilities of hackers are multiplied with AI, which allows both targeting and massification of attacks.

However, AI can also be an ally as it enables faster and more accurate detection of cyberattacks.

One of the major topics for you is protecting your clients against new generation risks. Can you explain what these risks are?

We are facing the amplification of certain risks, particularly cyber and climate-related. This reminds us of the importance of prevention actions. Moreover, new generation risks, sometimes complex and affecting various domains, are emerging and will continue to accelerate:

• Technological, such as the massive use of lithium-ion batteries and the risk of fires due to thermal runaway in case of impact or overheating, or photovoltaic panels that can cause fires or water damage, or even collapses in case of faulty installation.
• Development of AI: The learning nature of AI can be distorted by what feeds its learning. For example, Tay, the AI launched by Microsoft in 2016 to write tweets for teenagers, published hateful and discriminatory messages within less than 24 hours of its launch.
• Climate-related litigation involving chemicals such as PFAS, or legal actions aimed at holding companies accountable for climate change. These risks are often brought by NGOs or citizen movements and can result in major financial and reputational consequences.

These risks are changing the very foundation of insurance modeling. Past data no longer allows us to predict future occurrences. That is why, in the face of this increasing complexity, our role is to anticipate, prevent, and support our clients so that they can continue to develop in a serene and controlled environment.

AXA is an engaged player in the energy transition and supports companies that use technologies such as photovoltaic, hydrogen, and wind power.

We partner with installers of these technologies and those who operate them. For 10 years, we have been developing these activities and have observed that the risk primarily lies in poor installation and the lack of quality of the materials used.

That is why we put our prevention expertise at the service of these actors: by advising them with the support of our distribution networks on the choice of products certified by independent organizations, by directing them towards qualified installers, or by sharing protection lessons drawn from our claims analyses.

For example, in the photovoltaic sector, we have observed that companies best trained in both coverage and electricity are also those that record the fewest claims. It is this field experience that we value to secure our clients' projects.

Do you think that prevention has the potential to become a complementary market to property damage insurance? A service upstream of insurance?

Prevention is inherent to our insurance approach. It is essential that every client who comes to AXA receives prevention support and services from their advisor when they take out a business contract.

For example, our new Global Cyber Secure offer for businesses provides prevention services to our clients with the support of partners:

• Board Of Cyber allows for regular scanning of external vulnerabilities and provides companies with a clear dashboard of their cyber maturity level, with concrete recommendations.
• KAMAE offers continuous and gamified training to employees through interactive modules and phishing tests, to strengthen their reflexes against attacks. This type of awareness is essential, as 90% of cyberattacks originate from human error, often due to mishandling or lack of vigilance by an employee.

Regarding fire risk, we also offer specialized engineering services, such as the design of automatic extinguishing systems adapted to complex industrial environments. It is crucial to intervene from the design phase to define the most effective protection systems and ensure the sustainability of the activity.

The Auto Claims Report provides companies with an analysis of the causes of their automotive claims to propose adapted and personalized prevention measures.

Tomorrow, prevention will be a performance lever and a guarantee of credibility for companies, but also a key factor in insurability: that is why we have placed it at the heart of our business.