The bedrock of many economies, mid-market companies have substantial underwriting needs, demanding coverage that is affordable and agile, says AXA XL’s Laetitia Lebas.
Mid-market companies are the foundation of the economy in many places.
In developed countries, for instance, mid-size businesses account for about one-third of private-sector revenue and employment.
At the same time, this market segment represents an essential driver of change and innovation as mid-size companies continually introduce new products, technologies and business models.
WHAT ARE THE KEY PRIORITIES FOR INSURERS SUPPORTING THE MID-MARKET?
Because mid-market clients usually have limited financial resources and operate in highly competitive markets, maintaining tight control over ‘overhead’ costs is imperative.
Most mid-market firms also have some individual, higher-severity risks requiring tailored solutions.
Hence the importance of an agile underwriting strategy: one that encompasses standard coverage and the flexibility to structure affordable policies for different types of uncommon risk.
A further competitive edge comes from having dedicated mid-market teams that understand the particular needs of these companies and have high credibility with local brokers.
HOW SIGNIFICANT IS AN INSURER’S INTERNATIONAL PRESENCE TO MID-MARKET COMPANIES?
Mid-market businesses operating in more than one country expect their insurers to collaborate effectively across geographic and organisational boundaries to deliver locally relevant solutions within a global context.
For example, AXA XL’s proposition for a midsized Italian precision equipment manufacturer with sales and distribution operations in Japan and Mexico includes professionals with strong experience structuring policies and resolving claims consistent with each country’s laws, regulations and business practices.
An international insurer can help mid-size companies stay up to date with changes in the global risk landscape.
Even if they have no operations in other countries, mid-size companies still have suppliers, business partners and customers on different continents. And while they may not be directly affected by something happening in another country, reverberations can be felt quickly and widely in our highly interconnected global economy.
HOW WILL AXA’S GENERAL INSURANCE OPERATIONS WORK WITH AXA XL TO SUPPORT MID-MARKET COMPANIES?
AXA XL’s mid-market strategy in Continental Europe currently targets companies in the Netherlands, Denmark, Sweden, Norway, Spain and Italy, and, in many cases, our general insurance (GI) colleagues watched these companies grow and expand.
Our GI colleagues in these countries are intimately familiar with these nuances.
At the same time, AXA XL’s underwriters, claims handlers and risk engineers have experience with different industries, including structuring coverage that is fit for purpose, resolving complex claims and delivering value-added services to minimise risk.
By combining strength with strength, we expect to deliver a highly attractive value proposition to midsize companies in these countries.
ANY CLOSING COMMENTS?
Geopolitical developments, technological innovations and, in recent times, the ramifications of climate change all affect the global macroeconomic environment, which creates ongoing opportunities for companies while introducing new risks and uncertainties.
Between our global footprint, empowered local teams and entrepreneurial culture, AXA XL is poised to support mid-size companies as they seek to unlock new opportunities while successfully navigating the turbulence that characterises our world today.
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