News - AXA plans to open branch in Taiwan
Source: Asia Insurance Review | May 2012
AXA Group announced that it is seeking a licence to open a branch office in Taiwan and has filed an application with local regulators. This would be the second time AXA is entering the Taiwan life insurance market, having purchased Winterthur previously, before selling it off in 2007.
General Manager, AXA Taiwan, Mr Graeme Hannah said: “The entry this time is different as AXA is actively seeking green field entry, versus indirect acquisition through global M&A activity.” Explaining that the previous acquisition’s business model was not in sync with the AXA Group, he added: “AXA Group has emphasised the Asia market for future growth and has identified Taiwan as a key market.”
As insurance plays a big part of GDP expenditure in Taiwan, this gives rise to opportunities, he said, outlining that AXA intends to “build a long-term sustainable business in Taiwan, focussed on the sale of life insurance products through agents, bancassurance and telemarketing channels”.
Adding that “there is a disproportionate amount of premium spent on savings type products instead of protection”, he said AXA will thus focus on protection and health-related products. “We would like to provide customers’ financial protection throughout their different life stages,” he said.
Mr Hannah also stated that the company aims to be one of the largest foreign insurance companies in Taiwan by 2020, while delivering utmost customer satisfaction.
AXA is said to have spent up to eight months discussing the licence application with the Financial Services Commission, where the regulator increased certain requirements, which AXA has agreed to.