Bermuda-based global provider of specialty lines insurance and treaty reinsurance AXIS Capital Holdings is strengthening its operating model, making the company "future-ready" and further positioning it for long-term profitable growth. The aim is to capitalise on sweeping business, economic, and technological changes transforming the (re)insurance marketplace.
The enhancements are part of an ongoing strategy by AXIS to be a global leader in specialty insurance and reinsurance, with a focus on being a partner of choice for key clients and partners in distribution, the company says in a statement.
“These actions to strengthen our operating model set AXIS on a powerful path forward as we accelerate our strategy to be a leader in specialty insurance and reinsurance, while increasing our efficiency and enhancing our profitability. Customer-centricity is paramount to our thinking, and these changes will also allow us to improve the fitness of our company, making AXIS more agile and ready for the future so it can capitalise on an evolving market—all while providing greater value to our clients and delivering stronger returns to our shareholders,” said Mr Albert Benchimol, President and CEO of AXIS Capital.
“Our goal is to further differentiate AXIS in the market by putting in place the tools and means to empower our underwriters, claims, and actuarial teams, ultimately unleashing the power of our people to benefit all our stakeholders.”
The announcement follows AXIS’s recent acquisition of Lloyd's of London insurer Novae, and the latest enhancements are a continuation and acceleration of AXIS’s initiatives focused on establishing a differentiated market position and consistently delivering superior value creation.
Launch of Global Underwriting and Analytics Unit
As part of the revamp, AXIS is launching an enterprise-wide Global Underwriting and Analytics unit (GUA) which will partner with AXIS’s underwriting, claims, and actuarial teams within the business segments, arming them with greater insights, resources, and tools to deliver even more value and services to clients and distribution partners. This will include leveraging enhanced data and analytics capabilities to help inform decisionmaking, intelligently applying InsurTech, as well as optimising group portfolio management and capital allocation.
“Through our Global Underwriting and Analytics unit, we are creating a Data and Analytics Center of Excellence that builds upon our philosophy of coupling human ingenuity with powerful tools and insights. GUA will enhance our ability to deliver disciplined underwriting and offer even more value to our clients and partners,” said Mr Benchimol.
Realignment of A&H business
AXIS is also realigning its Accident & Health business, merging the units into its core Insurance and reinsurance segments. The move is expected to enable AXIS to continue focusing on client needs and to deliver synergies in combination with AXIS’s P&C insurance and reinsurance businesses.
”A&H is a successful and established global business that we expect to continue to grow profitability and be an important contributor to AXIS,” said Mr Benchimol. The realignment is also expected to create more opportunities for AXIS’s A&H teams to leverage customer and partner relationships across the business, better tap into existing client networks, and help ensure seamless delivery of A&H and more traditional P&C (re)insurance products to AXIS’s international clients. Further, the move is expected to help AXIS’s P&C reinsurance team leverage the geographic expansion and client relationships achieved by its A&H teams.
Introduction of integrated functional models for IT and Finance
AXIS will introduce an integrated functional model for both its IT and Finance departments, enabling the company to better leverage expertise across the organisation. The change is expected to improve agility, increase efficiency, and enable the functions to deliver greater value-added services to business units and their customers.
With the integrated IT functional model, AXIS will establish a strong foundation for growth, enabling the company to better support the business in differentiating initiatives and respond to customer needs.
In introducing an integrated “future-ready” functional model, AXIS’s Finance department will adapt its way of working and leverage technology to devote more time to value-adding activities and further increase its capabilities as a strategic partner to the company’s business units.
Separately, AXIS will combine Ceded Re and its third party capital business into a single strategic risk-funding department. AXIS expects that the combined team will enable the company to optimise risk-funding activities and deliver greater capacity to clients and partners in distribution.
The organisational changes, that include management reshuffles, will be in place during the second quarter of 2018. Teams throughout AXIS are commencing a detailed planning phase to implement the company’s future-ready, customer-centric operating model.