Democrance, the UAE-born InsurTech company has joined forces with AXA, one of the largest global insurers in the world to improve financial inclusion and accelerate the development of insurance and protection services that cater to the needs of the low- and middle-income classes across several countries including Thailand, Mexico, Egypt and the Gulf.
Inclusive insurance is the need of the hour, with an estimated 3.5 billion individuals unable to access or afford social protection, at a time when they may need it most. Together with Democrance, AXA is providing insurance via partnerships with mobile operators, money transfer operators, microfinance institutions, digital wallets, superapps, financial institutions and other inclusive FinTech providers. Digital routes to market mean insurance becomes more affordable for customers while at the same time making it viable for insurers to explore new segments.
Speaking on the partnership, Michele Grosso, Chief Executive Officer of 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, and AXA stands out as an insurance partner that has a proven strategy to inclusively target this underserved population. We are really excited and happy to be partnering on this with them globally.”
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.”
Later last year, Democrance and AXA started working together in Thailand, providing insurance to the customers of a leading mobile operator based on the individual customer spending behavior and patterns. In the UAE, AXA and Democrance are providing insurance to the domestic workers already on the FinTech platform Rise as well as to the migrant workers and their families who remit via money transfer operator HelloPaisa. This year, Democrance and AXA are also rolling out the partnership in Egypt with several microfinance institutions and in Mexico with a digital bank and a retailer, making this partnership truly global.
Democrance, founded in 2015, is an insurance technology startup with a mission to enable partnerships that make insurance accessible and affordable for all segments of society. We have created a digital platform that brings together key industries – insurance, telecommunications and money transfer organizations. By forging new partnerships, we unlock new markets for businesses while creating social value for populations that have previously been excluded from the benefits and protection insurance can provide. Through tapping into technology, we aim to restore the original purpose of insurance of providing mutual aid for those who need it most but can afford it least
The AXA Group is a worldwide leader in insurance and asset management, with 160,000 employees serving 108 million clients in 57 countries. In 2019, IFRS revenues amounted to Euro 103.5 billion and underlying earnings to Euro 6.5 billion. AXA had Euro 969 billion in assets under management as of December 31, 2019.
AXA Emerging Customers is the AXA Group’s inclusive insurance business arm. At the end of 2019, AXA covered over 18 million emerging customers in eleven countries: India, Malaysia, Philippines, Thailand, Egypt, Ivory Coast, Morocco, Nigeria, Senegal and Mexico.