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.
This group encompasses 5 operating business segment—
Life & Savings
Property and Casualty
Other financial services
In 1988 ,merger between AXA and Compagie 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 $45 million(US).
In 1994 ,AXA established AXA Asset management in Europe and later renamed it as AXA Investment Managers.
In 1996 ,AXA came out with an American Depositary receipts and got listed in New York Stock Exchange.
In 1999 ,the acquisition of Guardian Royal Exchange made AXA the largest player in Ireland non-life Insurance industry.
2001 witnessed a global economic slowdown due to the September 11,2001 terrorist attacks in the U.S resulted in claims of over US$ 70 billion.
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 dealt with several management issues, legal issues, capital allocation, integrating people and process due its merge with different companies.
AXA operated in many countries across the world and had to face statutory, regulatory and legal, accounting and tax systems that differed from country to country.
BUILDING THE AXA BRAND
CUSTOMER FOCUSED-KEY MEASURES
Listen to the voice of the customers(VoC)
Improving process performance to meet customers expectations
Continuous Improvement of the performance
Continuously listening to customers
Building a customer and performance oriented culture
Transfer to tools and methods to systematically control and act on the performance
FACT BASED METHOD-KEY FEATURES
Data driven approach
Key measure identified and systematically tracked
Employee Ownership and Responsibility
Empowering employees to act on the performance of their processes
DMAIC PRINCIPLE- THE AXA WAY
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, comprising of five different insurance products.
Insurance according to the mileage estimate
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
Role of employees in implementation of AXA way
Employee involvement Ownership of the tasks they were involved in and contribution towards improvement of processes Awareness of their activities , the group( strategies and objectives)and contribution to organization
Commission payments 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
Continuous improvement AXA Ireland – Innovation Quadrant - creating customer focused opportunities, improving, elimination, reusing success stories Madhouse program Voice of customers – Odyssiel in France Multihelp in Germany Insurance according to mileage estimates in Italy
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(10.6-6.6), reinvestment for maturities in Portugal(48- 57), reinvestment rate in Italy(27-44), Spain(23- 42) Increase in annual benefits € 38 million to € 200 million
BENEFIT OF THE IMPLEMENTATION OF “AXA WAY” 90 percentage 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
To improve the quality of the service further………….. Implementation of MBO Implementation of EVA Implementation of the BALANCE SCORE CARD -customer perspective -financial perspective -internal business process perspective -innovation and growth perspective Feed forward control