Pak Suhri, age 45, is married with two children and lives in Jakarta. He owns a gardening store and has used microcredit and microinsurance for himself and his family. After some difficult years, Suhri now knows that his family is better protected and that, together, they can look to the future with enthusiasm and optimism.
AXA is developing microinsurance products to encourage the emergence of a stronger middle class:
I work closely with the managers of entities in India, Thailand, the Philippines and Indonesia. My job is to identify, with them, the best business models for developing insurance products for the new middle classes in these emerging-market countries. It involves looking for global partnerships, devising innovative distribution models, and developing the full range of technical, digital and IT resources that will be needed to develop products for this promising segment of the population.
My main task is to liaise with Bank Mandiri, which is our partner handling the distribution of all our insurance products in Indonesia, including microinsurance. Bank Mandiri's very strong local network means that we can give customers better access to insurance, and we also benefit from Bank Mandiri's knowledge of local lifestyles.
As the head of the business, I am responsible for developing microinsurance/microcredit products in Indonesia. That requires not only in-depth knowledge of the financial capacity of our target audiences and their lifestyles, but also a new business model tailored to this kind of product. Microinsurance is highly specific: it relies on a large number of small premiums, a simplified and reduced cost of management, and alternative distribution networks.
Microinsurance products are different. They are aimed at a segment of the population that has no access to traditional insurance. My role is to carry out research on the ground to identify needs, financial capacity and cultural practices. Then, I design and develop products that genuinely address these needs and will enable customers to grow their businesses.
Consumer habits and needs are changing rapidly. Our customers are now used to dealing directly and more or less instantaneously via the Internet, but they also need advice and a personal relationship. AXA has to be able to provide the same standard of interaction across all delivery channels. People must be free to choose how they want to interact with AXA at any time and be guaranteed a smooth, seamless high-quality user experience.
People, businesses and large corporations are all faced with a wealth of new opportunities - and new risks - arising from technological disruption, for example, or climate change; it is up to us to devise effective, innovative solutions to protect them.