Dubai: The global insurance major AXA is looking to the high seas for higher growth and margins from its Middle East operations.
The insurer has identified underwriting marine-related risks as offering optimum prospects in the medium term.
To this end, a new risk management service for marine cargo services in the region is being rolled out. It will closely mirror what AXA offers in its core European markets.
"While the role of insurance is to pay claims, if we can deliver some service to prevent these it will be even better," said Jerome Droesch, CEO of AXA Gulf.
"It's certainly a first for the region where an insurer is delivering directly risk management services related to marine. It's only been available in Europe. It's the next big step for the company in the region.
"You need to be careful in putting all the goods in a shipment, especially when it involves very big items. We have relocated someone from Europe to get the business going here — this is a very specific skill.
"The marine business is quite an important one in this region. For instance, in construction projects, it's important to deliver huge pieces.
"I don't think it's purely a case of us seeking higher margins from lines where the competition is less intense. The objective from the new risk management product is to deliver the services for the same price. We think as we have the branding and the global knowhow, it's the ideal time to deliver a similar product here."
There is a backdrop to AXA's push into what could be more profitable lines. In markets such as the UAE, there is no let up in the squeeze on margins from underwriting motor and health insurance. The intense competition has all but ensured it will remain so.
"It's still a difficult market and utilising all our assets we can continue with the same type of growth objectives," said Droesch. "But what we what to do now is innovate quite a bit and that's why the marine business is central to our plans."
Staying with marine, AXA is working on a specialised product suited for the bigger yachts. "While we have had quite a large market share in terms of insuring companies shipping goods, it's not been at the same level on the yachting part of the business," said Droesch.
"There are many big boats in the region and it's an area we need to innovate in. But having the skills in marine, I think we can deliver a high level of service to individual customers. The beginning of next year should be ideal for the launch of the new product."
