The axa way-improving quality of service by ketan thakur

1. Presented by:-
Ketan Thakur
Swati Dheshmukh
Ashrit Mehta
Arpit Vishnoi
Bhanu Partap

2. 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 and
Middle-East.
 In 1988, merger between AXA and Company Du Midi ,
 In the same year AXA got listed in Paris stock exchange.

3.  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.

5. This group encompasses 5 operating business segment—
 Life & Savings -This product segment offers a wide range of product for
individuals and group. Includes life, health, saving and retirement related
products.
 Property and Casualty- Includes automotive, homeowners, houshold
property for small to medium sized companies.
 International Insurance- corporate solutions
 Asset Management- specialist teams who look after the activities in western
Europe, United states and Asia Pacific.
 Other financial services - Includes cash flow management, bank account
services to AXA-clients .

6. Problems
 In 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 consumer
confidence 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, capital
allocation, integrating people and process due its merge with different
companies

8. The dmaic principles
• D - Define
• M - Measure
• A - Analysis
• I - Improve
• C - Control

9. DMAIC PRINCIPLE- THE AXA WAY

10. Implementation @axa
• 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

11. 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 to
systematically Control and act on the empowering employees
performance. to act on the performance
Building a customer and performance of their processes
Oriented culture.

12. EMPLOYEE OWNERSHIP - AXA way
 Being a service industry :-
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.
 Proper work environment .

13. CONTINUOUS IMPROVEMENT
 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(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)

14. BENEFIT OF THE IMPLEMENTATION OF
“AXA WAY”
• Ranked as most preferred company.
• 23 companies accounted 90 percent 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

15. 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, surrender rate(10.6% in 2002 to
6.6% in 2004), reinvestment rate for maturities in
Portugal(48% in 2004 to 57% in 2005), reinvestment rate in
Italy(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)