Governance and

Control
At
France
AXA

BY
CHAITANYA
PRERNA
PRASAD
RAJESH
SIVA
VINITH
SNEH
 Introduction
• France Based Group specializing in
Insurance and Investment
Management Solutions
• Operations in Five Business Segments:
Life and Savings, Property and
causality, International Insurance,
Asset Management and other Financial
Services
• AXA has a Dual Corporate Governance
Structure- Activities being Controlled
by Supervisory Board and
 Global Ventures
• Parent Company of AXA Group-
MCI Founded in 1816
• Till Early 90’s expanded
organically and inorganically
within France.
• 1st Overseas Venture in Canada in
1955.
• While Going Global, AXA global
Market Share:
France- 60%, Rest Europe- 30.2
%, Canada- 0.5% and
 Good Control-1CENTRALIZATION
AT AXA
Previous structure New structure
LoB/ local
organization
LoB/ local
#3
organization
#3

TE
LoB/ local LoB/ local

LE
LoB/ local LoB/ local organization organization

C
O
organization organization #2

PO
#4

M
M
#2 #4

U
N
IC
AT
Corporate Corporate

IO
organization

N
organization

S
Ap se

S
pl rvi

IM
i c ce

LA
LoB/ local LoB/ local

at s
LoB/ local LoB/ local
organization organization

io

C
organization organization

n
#1 #5 #1 #5

LoB/ local
BPO CLAIMS organization
LoB/ local #n
organization
#n

TELECOMMMUNICATIONS

APPLICATION SOLUTIONS
Good Control-2 DECENTRALIZED RISK
MANAGEMENT
CENTRAL RISK
MANAGEMENT
DEPARTMENT

MANA SUPER
GEME VISOR AUDIT
NT Y COMM
BOARD BOARD ITTEE

CF
O

LOCAL LOCAL
LOCAL OFFICE
OFFICE OFFICE
#1 #N
#2

Local risk management

department
 Risk Management Internal process

A global & loc al go vern an ce ba sed on b us ine ss-o rien ted

Se
Group Risk t st
Management Team an
da
o rt tice Pr
rd
i th pp rac ov
s&
w su t p id gu
k y
or sel bes Pr
er
isk
id
el
W lo re ov in
Ÿ C ha an ide
re
po
es
ŸS re
g d l oc rt
ul in
arf al g
ee vi
db ew
ack
Local Business Local Risk
Departments Management Team
Help to find compliant
Ÿ Actuarial solutions /Control /Approve
Ÿ Asset
Management
Ÿ Product design
Ÿ…
6
Good Control-3 DECENTRALIZATION
NEW
AT AXA CAPITAL
PRODUCTS
HQ
KPI
BRAND

SUPERVISORY BOARD
MANAGEMENT BOARD

PRODUCT
STRTEGIES LOCAL
RM
OFFICE PRACTICES

MARKET
DEVELOPMEN
T
DISTRIBUTIO
N
 Bad Control- I
• Partial Governance of Business &
Distribution at Centralized and
Decentralized Level
• Functions like Retail Business,
Health Business, Commercial
Business and Distribution &
Marketing were controlled at
Centralized level
• Localized decisions were also
implementation
Solution to bad control-1

Due to Sales and Marketing , and

regulatory Issues, Business and
Distribution functions must be
practiced at subsidiary levels
 Bad Control-II
All the KPI’s cannot be centralized.
The same key performance indicators
cannot be applicable to different
subsidiaries present around the world.
Different customers would have different
requirements in terms of insurance
policies.
For example property and casualty
insurance segment is not well
regulated in India where as it is highly
 Solution to Control-II
Certain extent of decentralization
provided to KPI’s according to the
local market insurance
requirements of regional markets.
Adequate amount of authority
should be provided to subsidiaries
in deciding the organization wide
KPI’s.
THANK YOU