AXA fielding more bancassurance experts

MANILA, Philippines - AXA Philippines has fielded 62 financial specialists (FSs) in 213 branches of the Philippine Savings Bank (PSBank) in just one-year since their bancassurance partnership started in June 2014.

The partnership allows AXA’s specialists to sell its life insurance policies through the thrift bank’s branch network.

AXA Philippines chief bancassurance officer Marie Raymundo said a total of hundred FSs would be fully operational by the end of the year.

“We are comfortable with a ratio of one FSs for roughly three PSBank branches,” Raymundo said.

PSBank senior vice president for marketing Noel Tuazon pointed out the thrift bank of the Metrobank Group presently runs a total of 247 branches.

“Another 10 to 15 branches would be operational by the end of the year,” Tuazon said, adding that PSBank prefers tempered aggressiveness in its expansion habits.

For the bank, the partnership offers the bank’s clientele more products for savings, investment and protection. Revenues result in fee-based income and greater client loyalty for the bank.

The partnership has generated premium income estimated at P51.7 million or 1,091 insurance policies written.

Branches located in Metro Manila remain the top producers of life insurance policies for AXA’s bancassurance alliance with PSBank.

Southern Luzon is the second best producer followed by Northern and Central Luzon, Eastern Visayas, and the rest of Visayas and Mindanao.

Incidentally, the life insurer also has a bancassurance partnership with the Metropolitan Bank & Trust Co. (Metrobank), which accounts for majority of AXA’s premium income.

Raymundo said AXA offers 10 to 12 insurance and investment-laced insurance products (known as variable unit linked or VULs) through the PSBank branches.

But sales have been tempered by choice.

“Our approach is to customize or personalize, means we first find out what they want, what they need or what is affordable instead of jamming the products down their throats,” the AXA executive explained.

So far, the top seller has been its education and insurance products, which incidentally accounts for 50 percent of sale. Health insurance is the second popular protection product followed by income protection, and savings products.

AXA will be formally launching its VUL products this month through PSBank branches, at a minimum initial premium at P2,000.

The investment portion of the VUL are peso and US dollar denominated funds. It will likewise come in single pay and regular pay variants.

The six peso-denominated VULs are: Wealth Equity Fund (stock market); Wealth Balanced Fund (mix of government bonds and equities); Wealth Bond Fund (government bonds); Opportunity Fund (selected equities); Chinese Tycoon Fund (invested in listed companies owned by Fil-Chinese tycoons); Spanish American Legacy (listed companies with Spanish or American heritage); and Peso Liquidity Fund (ideal parking fund for market volatility).

The five dollar-denominated VULs are: Premium Bond Fund (dollar fixed-income securities issued by Philippine government and top corporations); Capital Investment Fund (dollar money market instruments and government short- and medium-term securities); Global Advantage Fund (invests in NASDAQ 100 index); European Wealth Fund (invests in a Eurozone index); and, Asia Growth Fund (invests in a major Asian index).

AXA Philippines ranked second best among the country’s 32 life insurers last year. It is a subsidiary of AXA Group of France, the fastest growing life insurance company globally.