AXA XL reveals new risk innovation incubator Cube

AXA | November 19, 2019

AXA XL, the property & casualty and specialty risk division of AXA Group, has introduced a risk innovation incubator called Cube. Available globally and described as the first of its kind, Cube will feature a series of workshops in which AXA XL and its clients test new risk management solutions to ultimately come up with a prototype and a supporting business case. The six-week program will see risk managers working alongside AXA XL risk and innovation experts. “Cube supports our goal to go beyond traditional insurance to become a comprehensive partner to our clients,” said Philippe Gouraud, global head of strategic distribution at AXA XL. “The program’s structured and well-tested approach allows us to offer our clients a robust environment to innovate.

Spotlight

Insurance is a service that is currently very non¬transparent. Most notably, the reasoning behind the calculation of premiums is not disclosed and, therefore, cannot be considered intrinsically fair by customers. For auto insurance in the USA, a typical loss ratio is about 60 percent and adjustment expenses make up another 10 percent of premiums. Only half of the premiums are paid back as reimbursements. Insurance companies and policyholders have conflicting interests. This is reflected in various bad¬faith practices of the companies, such as unreasonable delays, denial of payment, etc. Though some jurisdictions try to mitigate this by adopting the tort of insurance bad faith, the general public has a very negative perception of the industry.

Spotlight

Insurance is a service that is currently very non¬transparent. Most notably, the reasoning behind the calculation of premiums is not disclosed and, therefore, cannot be considered intrinsically fair by customers. For auto insurance in the USA, a typical loss ratio is about 60 percent and adjustment expenses make up another 10 percent of premiums. Only half of the premiums are paid back as reimbursements. Insurance companies and policyholders have conflicting interests. This is reflected in various bad¬faith practices of the companies, such as unreasonable delays, denial of payment, etc. Though some jurisdictions try to mitigate this by adopting the tort of insurance bad faith, the general public has a very negative perception of the industry.

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