AXA, Alibaba and Ant Financial Services have agreed a global partnership to jointly explore opportunities to distribute AXA’s products via Alibaba’s global ecommerce ecosystem, benefiting both the businesses and consumers that transact via Alibaba’s marketplaces.
The ultimate objective is to co-innovate and develop tailored insurance products for specific segments of Alibaba’s customer base while simultaneously supporting each other in developing and exploring new markets and segments.
The first phase of the proposed collaboration will focus on the following areas:
- AXA will develop tailored insurance products for AliExpress global customers, such as extended warranties for repairs and/or damaged goods and enhanced online payment protection.
- AXA will provide additional insurance options to small and medium businesses from all over the world which are already trading on Alibaba platforms.
- Through Ant Financial Services, AXA would offer travel insurance products for Chinese travelers going overseas.
Additionally, this partnership also provides an interesting counter narrative to the fear that InsurTechs will compete directly with traditional insurers. Instead of this zero sum scenario, traditional insurers such as Axa will continue to leverage their underwriting expertise to partner with, as opposed to compete with, InsurTechs.
Ultimately, this partnership highlights a growing trend across the insurance industry whereby insurance will be distributed through ecosystems as an add on and not a push/sell product.