Insurance provider Axa has joined forces with UAE-based technology firm Democrance to improve financial inclusion and boost the development of insurance and protection services targeting low- and middle-income individuals and families.
The partnership aims to boost what they call ‘inclusive insurance’ – the extension of protection and insurance products to underserved client segments.
The two firms estimate that there are around 3.5 billion people around the world who are unable to access or afford social protection, and the partnership will target 10 million individuals across the Middle East, Asia, Africa and Latin America.
It will see Axa and Democrance work together to market and provide insurance products through digital channels and make it more affordable for customers, while insurers can explore new segments and avenues.
Meeting client needs
Michele Grosso, chief executive at Democrance, said: “Inclusive insurance products are primarily designed for those who do not have access to or cannot afford traditional insurance but are still- or especially- in need of social protection.
“Insurers are eager to provide products but have no way to access and service these consumers in ways that are cost efficient enough to keep premiums low.
“Digital technologies have really changed the game and levelled the playing field in this respect, lowering administrative and acquisition costs.”
Garance Wattez-Richard, head of Axa emerging customers, added: “Four years ago Axa set up a business dedicated to protecting tomorrow’s middle class across emerging markets because we believe it to be one of the key paths to sustainable impact.
“We are confident that this partnership with Democrance will help us achieve our objective of inclusive protection for all, building upon the power of technology.”
Axa started working with the insurtech firm last year in Thailand, they are also operative in the UAE and will roll out the partnership in Egypt and Mexico this year.
