8/12/2019 The AXA Way Improving Quality of Services

1/16

Presented by:-

Ketan Thakur

Swati Dheshmukh

Ashrit Mehta

Arpit Vishnoi

Bhanu Partap

8/12/2019 The AXA Way Improving Quality of Services

2/16

Case introduction

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 andMiddle-East.

In 1988, merger between AXA and Company Du Midi ,

In the same year AXA got listed in Paris stock exchange.

8/12/2019 The AXA Way Improving Quality of Services

3/16

It has 42 subsidiaries ,1600 employees and 4000 generalagents.

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 Depositaryreceipts and got listed in New York Stock Exchange.

In 1999, the acquisition of Guardian Royal Exchange madeAXA the largest player in Ireland non-life Insuranceindustry.

8/12/2019 The AXA Way Improving Quality of Services

4/16

8/12/2019 The AXA Way Improving Quality of Services

5/16

This group encompasses 5 operating business segment

Life & Savings -This product segment offers a wide range of product forindividuals and group. Includes life, health, saving and retirement relatedproducts.

Property and Casualty- Includes automotive, homeowners, housholdproperty for small to medium sized companies.

International Insurance- corporate solutions

Asset Management- specialist teams who look after the activities in westernEurope, United states and Asia Pacific.

Other financial services - Includes cash flow management, bank accountservices to AXA-clients .

8/12/2019 The AXA Way Improving Quality of Services

6/16

ProblemsIn 2001, economic slow down due to which decline in corporate earnings.

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 consumerconfidence in financial products.

Due to global recession in 2001 AXA revenues dropped by 6.25%compared to 2000.

AXA had to deal with several management issues, legal issues, capitalallocation, integrating people and process due its merge with differentcompanies

8/12/2019 The AXA Way Improving Quality of Services

7/16

8/12/2019 The AXA Way Improving Quality of Services

8/16

The dmaic principles

D - Define

M - Measure

A - Analysis I - Improve

C - Control

8/12/2019 The AXA Way Improving Quality of Services

9/16

DMAIC PRINCIPLE- THE AXA WAY

8/12/2019 The AXA Way Improving Quality of Services

10/16

Implementation @axa

D identification of complaints

M audit of a sample of payments

A

instance of inaccurate payments and thecauses of mistake

I correct commission rates,

C - query system

8/12/2019 The AXA Way Improving Quality of Services

11/16

Customer focus Fact Based Method

Listening to the voice of the customers(VoC) Data Driven approach

Improving processes performance to meet customer key measures identified

Expectations

Continuously listening to VoC Employee ownership

Transfer to tools and method tosystematically Control and act on the empowering employees

performance. to act on the performance

Building a customer and performance of their processes

Oriented culture.

8/12/2019 The AXA Way Improving Quality of Services

12/16

EMPLOYEE OWNERSHIP - AXA way Being a service industry :-

AXA considered its employees as its most valuable asset andbelieved 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 tomeasure employee satisfaction.

Proper work environment .

8/12/2019 The AXA Way Improving Quality of Services

13/16

CONTINUOUS IMPROVEMENT

Regular customer feedback & incorporating it into its productsand services across the organization.

AXA Ireland started Mad House Program

VOC was used by AXA to introduce several new products. AXA introduced Multihelp(Germany), comprising of four

different insurance products.

Driving Help -insurance to drivers Travel help -loss cause due to flight delay Home Help -security services Insurance according to the mileage estimate(Italy)

8/12/2019 The AXA Way Improving Quality of Services

14/16

BENEFIT OF THE IMPLEMENTATION OF

AXA WAY

Ranked as most preferred company.

23 companies accounted 90 percent of thegrowth revenues.

Customer satisfaction Customer retention

Annual benefits-technical gains, productivity

gains, reduction in general expenses, incrementalrevenues, cost reduction

Wide range of the product

8/12/2019 The AXA Way Improving Quality of Services

15/16

Changes

In a span of one year 200 ideas were presented of which 20were implemented.

Scope survey score increased from 36 in 2003 to 47 in 2005.

Customer satisfaction on servicing increased from 64 to 69percent, and in customer satisfaction on selling , it increasedfrom 64 to 79 percent

Customer retention in Japan, surrender rate(10.6% in 2002 to6.6% in 2004), reinvestment rate for maturities inPortugal(48% in 2004 to 57% in 2005), reinvestment rate inItaly(27% in 2004 to 44% in 2005) & in Spain(23% in 2004 to

42% in 2005) Increase in annual benefits 38 million(2003) to 200

million(2006)

8/12/2019 The AXA Way Improving Quality of Services

16/16