Driven by the success of its parametric solutions, AXA accelerates the development of these products by launching AXA Global Parametrics. Parametric insurance is based on the use of a parameter correlated to a client’s damages or losses. A wide variety of risks can be covered through parametric insurance, such as adverse weather affecting businesses or causing crop losses.
Since 2014, AXA’s parametric insurance team, then part of AXA Corporate Solutions, has developed a market-leading expertise in climate risks and worked with many different actors in various sectors across the world, i.e. weather-sensitive corporates in agriculture, renewable energy, construction, transportation, leisure and textiles, as well as with international institutions and governments. These products have convinced clients in 28 countries, and 40% of revenues have been generated in Asia.
The newly created AXA Global Parametrics will broaden the range of solutions to better serve our existing customers, and expand its scope to SMEs and individuals.
Parametric insurance has proven to be a high growth startup business over the last two years, and I am convinced it can scale up under the leadership of Tanguy Touffut. In line with Ambition 2020, AXA Global Parametrics will also contribute to the Group’s transformation through an enhanced customer experience, optimizing many steps in the traditional insurance process, and amplifying the scope of the insurable
AXA Global Parametrics will support AXA’s P&C community and Group Innovation team in designing a broad range of parametric products to cover risks in many forms, both in mature and emerging markets.
AXA Global Parametrics will be one of the key enablers for selected initiatives fuelled by the Innovation team with a strong focus on accelerating our blockchain ambition for a more transparent and seamless customer experience
To lead this new entity, Tanguy Touffut, previously Global Head of Parametric Insurance at AXA Corporate Solutions, was appointed CEO of AXA Global Parametrics, effective March 1st, reporting to Gaëlle Olivier.
The parametric approach offers a simple, accurate, transparent, and affordable insurance solution to clients worldwide. For instance, AXA can provide custom covers based on weather or vegetation indices, using high-resolution satellite data to measure soil moisture or plant development