AXA PHILIPPINES

A Strategic Business Policy Paper Presented to the Faculty

of the College of Hospitality and Tourism Management

In Partial Fulfillment of the Requirements for the

Degree of Bachelor of Science in

Hospitality Management

Submitted by:

DELA CRUZ, Juan M.

DELA CRUZ, Juan M.

DELA CRUZ, Juan M.

DELA CRUZ, Juan M.

Submitted to:
DR. CARLO JAY A. EVARDONE

Second Semester, 2023

 TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION 1
Background 1
History of the Firm 1
Vision and Mission 2
Core Values 2
Organizational Structure 3
Company Policy 3
Current Corporate Strategies 7
Marketing Strategy 7
Human Resource Strategy 8
Production Strategy 11
Financial Strategy 12

CHAPTER 2: INDUSTRY AND FIRMS ENVIRONMENT 13

External Environment 13
Economic Factors 13
Political and Legal Factors 15
Technological Factors 19
Socio-Cultural Factors 20
Task Environment 22
Competitors 24
Internal Environment 25
Human Resources 25
Production and Operation Resources 28
Marketing Mix 29
Financial Statement 33
CHAPTER 3: SITUATIONAL ANALYSIS 39
SWOT Analysis 39
Strengths 36
Weaknesses 37
Opportunities 38
Threats 40
TOWS MATRIX TABLE 41

CHAPTER 4: ALTERNATIVE COURSES OF ACTION 42

Alternative Course of Action #1 42
Advantages 42
Disadvantages 43
Alternative Course of Action #2 43
Advantages 43
Disadvantages 44
Alternative Course of Action #3 45
Advantages 45
Disadvantages 45
CHAPTER 5: RECOMMENDATION 47

CHAPTER 6: PLAN OF ACTION 49

REFERENCES
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Chapter 1

Introduction

AXA Philippines is a joint venture between the AXA Group, headquartered

in France, GT Capital Holdings, Inc. (GT Capital), a leading listed conglomerate
in the Philippines, and Metropolitan Bank and Trust Company (Metrobank), one
of the Philippines’ largest financial institutions. It is duly recognized by the
Insurance Commission and has the following licenses to operate: 2019/37-R for
AXA and 2019/40-R for Charter Ping An.

AXA now offers a complete range of products for all its customers’
insurance and financial protection needs, including savings and investments,
health plans, and income protection; and through its general insurance
subsidiary, Charter Ping An: fire, motor/car, marine cargo, personal accident,
bonds, casualty, and engineering insurance products.

History of AXA

AXA Philippines, founded in 1999, is one of the country's largest and

fastest-growing insurance companies. Through its wholly-owned subsidiary
Charter Ping An, it provides financial security to nearly 2 million people through
group and individual life insurance, as well as general insurance products.

AXA Philippines was one of the first companies in the country to launch
bancassurance operations, and it is a pioneer in the investment-linked insurance
sector.
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Mission

To provide products, services and solutions of the highest quality and

deliver more value to our customers that earns their respect and loyalty.

Vision

To transform AXA's value proposition “from payer to partner”, we will

deliver new services complementing the traditional insurance coverage and build
new business models to increase the protection of our customers

Core Values

● Courage
● Integrity
● One AXA
● Customer First

AXA's core values reflect the culture that the Group's teams around the
world live and express each day. The strength of AXA's company culture and it
is outstanding managerial continuing over 40 years can also be seen in the
proximity of its values across the various periods.

Goal and Objectives

Goal and Objective To act for human progress by protecting what matters.
Protection has always been at the core of our business, helping individuals,
businesses, and societies to thrive.
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Organizational Structure

Company Policy

AXA Philippines applies strict security measures to protect the privacy of

personal information. Also, the company ensures the protection of the right of
privacy while maintaining the integrity, accessibility, and confidentiality of your
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personal data against any incidents or breaches. All employees, directors, and
distributors are obligated by this agreement.

● CONFIDENTIALITY AND NON-DISCLOSURE

Without the written authorization of AXA Philippines, the THIRD PARTY, its
workers, and agents shall not reveal or expose to any person or existent any
nonpublic information bared to them or attained during the performance of the
services herein contracted for, nor shall they allow anyone differently to discover
or expose to third parties similar nonpublic information. While in possession of
the nonpublic information, the THIRD PARTY is needed to take all necessary
safety preventives and exercise the utmost industriousness and care.

● CORPORATE SOCIAL RESPONSIBILITY

AXA Philippines promotes social and environmental responsibility among its

suppliers and, in particular, aims to have an open dialogue with them about these
matters. In the event that the company determines, after speaking with THIRD
PARTY, that THIRD PARTY's business practices are in conflict with the
principles and practices outlined in AXA Philippines' Compliance and Ethics
Guide, AXA Philippines reserves the right to refuse to renew this Agreement
and/or apply an AXA Group-wide prohibition on entering into coming contracts
with THIRD PARTY. The three main specific (ILO) principles listed below must
be followed by vendors doing business with AXA Philippines:

(i) avoid using child labor (work performed by someone under the age of
15) or forced labor, or accept that their own suppliers and subcontractors
do so;

(ii) give a safe and healthy workroom for workers while esteeming their
individual and collaborative rights;
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(iii) and encourage non-discrimination (grounded on a person's ethnical,

religious, or political persuasions) in the hiring and operation of workers.

AXA Philippines reserves the right to end this Agreement for convenience without
incurring any liabilities (apart from paying any quantities due and owing for
services rendered up until the date of termination), including, without limitation,
paying any early termination damages to THIRD PARTY, in the event that THIRD
PARTY fails to adequately manage the aftermath at hand or there are posterior
repeated violations.

● ANTI-BRIBERY POLICY

By signing this agreement, the Parties affirm, warrant, and agree that:

(i) the behavior that this Agreement foresees, (ii) any situation concerning any
manner, including without restriction the concession, directly or laterally affiliated
to this Agreement adherence to the terms of this Agreement and the Parties'
performance hereunder, or (iii) any fresh conduct taken by the parties or in their
name,

(a) It has not broken any applicable anti-corruption laws or regulations in force in
the country where either Party is domiciled or conducts business, and it promises
that it won't do so in the future.

(b) It has not engaged in the following conduct and agrees that it will not do so in
the future: make payments or transfers or the promise of payments or transfers
of value; make offers, promises, or giving of any financial or other advantages;
or requests, agreements to receive, or acceptances of any financial or another
advantage, either tangible or intangible, including gifts or kickbacks; or permit or
authorize any of the aforesaid acts, either directly or indirectly, which have the
potential to harm others.
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(c) In order to fulfill its obligations under this Agreement, it must ensure that any
associated persons, agents, or subcontractors comply with the obligations; and

(d) If they learn of any conduct by one of their employees, contractors,

independent consultants, or agents that constitutes bribery or corruption, or if
they have a specific suspicion of such conduct, they must notify the other party
right away. The non-violating party then has the right to suspend or terminate the
agreement if it learns of a breach of the other party's obligations, it shall give the
other party prompt written notice of violation of an anti-corruption law, a promise
or warranty, etc.

● ANTI-MONEY LAUNDERING (“AML”) RESPONSIBILITY

Third-Party hereby attests that it will, upon written request from AXA Philippines,
provide: 1) certified true copies of the subcontractors' identification documents;
and 2) access to the same identification documents for any applicable regulatory
agency(ies) that may need access to them.

As long as the subcontractor continues to be a subcontractor, this document

that's made of this Agreement is in compliance with the forenamed regulation
and may be reckoned upon despite the boundary of the agreement between AXA
Philippines and the third party, the subcontractor of the third party and the
retention period necessary to keep all documents and information regarding the
subcontractor under any law or regulation of any authority, wherein any deal
under the agreement between AXA Philippines and the third party shall be
performed, has not expired.

● DATA PRIVACY

THIRD-PARTY shall comply with all important legislation, principles, industry

codes, and policies relating to the Privacy Activities counting any security law by
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which AXA Philippines is bound and of which AXA Philippines informs THIRD
PARTY, as in case THIRD PARTY were bound. THIRD-PARTY should get AXA
Philippines’ written consent prior to disclosing any Individual Data given to
THIRD PARTY by AXA Philippines to any person or substance either inside or
outside the Republic of the Philippines.

● FATCA (Foreign Account Tax Compliance Act)

AXA Philippines with copies of relevant documents. THIRD-PARTY shall give

AXA Philippines accurate information and documents for purposes of compliance
with applicable laws and regulations.

THIRD-PARTY acknowledges that AXA Philippines is registered as Reporting

Model 1 FFI. As a PFFI, AXA Philippines may be required to deduct or withhold
such amount from any payment to clients and counterparties that are classified
as Non-Participating Foreign Financial Institution. Only applicable to financial
institutions, e.g., banks, brokers/dealers, insurance companies, hedge funds,
securitization vehicles, and private equity funds.

● LIMITED USE OF AXA LOGO AND AXA NAME

AXA Philippines hereby grants THIRD PARTY a non-transferable, non-

sublicensable, royalty-free, and revocable right to use the AXA logo and "AXA"
name. The right is granted only for the term of this agreement and 12 months
after its expiration. AXA Philippines' right to use the THIRD PARTY's logo,
service name, domain name, and other AXA trademarks in any communications,
either written, oral or visual, and on any media whatsoever. Any use not
expressly authorized by AXA Philippines herein is forbidden.
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● SANCTIONS EXCLUSION CLAUSE

AXA undertakes no obligation to make any payment under, or otherwise to

implement this Agreement if it would expose AXA to any sanction, prohibition, or
restriction under United Nations resolutions or the trade or economic sanction,
laws, or regulations of the European Union, United Kingdom or United States of
America.

The policies of AXA Philippines are subject to revision at any time, and the
THIRD PARTY, its workers, and its agents are needed to abide by the most
recent versions. However, the policy will take priority, If any applicable AXA policy
contradicts with anything in this text.

Current Corporate Strategy

Marketing Strategy

AXA Philippines has a broad segment in which it focuses on all insurable

companies and individuals in need of asset management outsourcing and
dependable insurance facilities. AXA Philippines has been in the insurance
industry for over a century and is a leading provider of insurance in the
Philippines.

● Keep Wellness Going – COVID-19 pandemic has had a big impact on

the physical and mental health of each person around the globe. AXA
Philippines empowers everyone with the new campaign, “Keep Wellness
Going”. This encourages the customers in protecting themselves and their
loved ones. The “Keep Wellness Going” promotes a long, productive, and
fruitful life by caring for one’s health and well-being. To achieve overall
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wellness, AXA shares some pointers to proactively care for customer's

health to achieve their goals and preserve their well-being; (1) Make better
choices when it comes to food (2) Do more of what you love (3)
Celebrating small wins is a form of self-care (4) Caring for others is caring
for yourself.
● AXA Health Care Access – This health care access, in accordance with
the "Keep Wellness Going" campaign, provides everyone with flexible and
affordable comprehensive health protection. It is a health care plan that
covers all health care needs for individuals and all types of families.
Furthermore, this access to health care provides comprehensive women's
health coverage to assist with prevention and diagnosis, treatment,
hospitalization, and even mental health.
● EMMA Mobile App – AXA's new platform, "Emma," is a digital health
platform that allows customers to access important healthcare services
and conduct all insurance-related transactions 24 hours a day, seven days
a week, from anywhere.

Human Resource Strategy

In keeping with the Company's key principles of professionalism,

innovation, pragmatism, team spirit, and honesty, AXA advocates a management
style that tries to empower people; the important tool is learning. One of HR's key
goals is to help employees improve their technical knowledge and develop as
leaders. Talented, motivated, and resilient people are more important than ever
to the success of AXA in a demanding and unpredictable business environment.
AXA Philippines is a high-impact learning place and development at the top of
the HR agenda. It offers managers and staff members ongoing chances to
enhance their performance through both regional programs put forth by
organizations and larger programs given by AXA University.
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They are committed to limiting their direct influence on managing their

personnel through active management of AXA Philippines. They are also
conscious of the potential impact they may have on improving management, and
the environment, advancing understanding of future support management and
increasing stakeholder awareness of their personnel. Their services and
insurance will all be impacted.

Jaspreet Kakar, chief human resources officer, discussed developing an

agility attitude and how it helps organizations continue to develop by putting
people before processes. AXA Philippines takes pride in giving its employees the
freedom to bring their best selves to work by decentralizing decision-making,
providing them with cutting edge technology, and offering the greatest benefits.

AXA Philippines Compensation and Benefits

Rules regulating compensation are created to ensure that wage rates are
both competitive with market rates and adapted to specific individual
characteristics, keeping in mind both the team's contribution as well as the
person's abilities and achievements. Performance is always judged according to
how well plans have been achieved. At AXA Philippines, like in every
organization, rewards and recognition are important factors in fostering
employee engagement and a fruitful and prosperous career. Tangible and
intangible factors are equally weighted in terms of reward and recognition.
Incentive comprises a significant portion of the work experience with the
Company and goes beyond salary and benefits.

AXA’S Employees Compensation

A "Total Reward Strategy" has been identified with the following

objectives:
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1. recruiting and keeping talent on the market by providing attractive

compensation;
2. promoting internal fairness by raising wages according to their roles and
responsibilities without regard to unnecessary criteria;
3. encouraging justice through the differentiation of performers using a
reward for performance strategy to reflect achievements and impacts;
4. sticking to our sustainability plan;
5. By linking compensation to goals and performance, ensuring cost
sustainability and appropriate risk management.

This is important if we want to continue to be one of the most motivating

businesses to work for and earn the title of Recommended Insurance Company
among our clients and stockholders.

AXA’S Employee Benefit

The benefits provided by AXA create a major role in the entire Employee
Value Proposition. All AXA employees should have access to a competitive
benefits package, which includes several different options.

AXA's benefits may serve as a principal source in some areas, or they

may serve as an addition to governmental systems' coverages. Since benefit
plans might differ greatly between nations, AXA's strategy is country-driven.

AXA supports flexible benefit plans that let workers select the benefits
they value most highly. The availability of ethical investing options is another
manifestation of AXA's sustainability approach.

AXA launched Global Health Policies insurance for all AXA workers
across the world along with AXA Philippines, in addition to local benefits:
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1. Global Parental policy allows at least 16 weeks of paternity leave and 4

weeks of maternity leave, respectively.
2. There are services that make up the "Healthy You" health and wellness
policy, which is based on three complementary support beams:

Prevention:

● a physical and mental medical evaluation

● a day intended to raise awareness and knowledge of health
● a flu vaccine

Access care:

● a program that provides employees with psychological support

● a teleconsultation service with professionals for staff
● a resource for healthy living

Production Strategy

AXA Philippines distributes its products through a multi-channel

distribution network in the Philippines, which includes agents, bancassurance,
and corporate solutions. AXA bases its operations on its innovations to address
and manage the effects of the COVID-19 pandemic, as well as to protect and
assist Filipinos in the most recent and significant ways. The company also
broadened its potential customer base by searching not only traditional but also
digital channels.

Among AXA's initiatives was the ability to improve customer service in the
midst of extensive disputes caused by the pandemic, as well as to serve
customers in a new environment through new distribution channels. It launched
several digital initiatives, including AXA Virtual Assistant, which enables
distributors to interact with clients and conduct online transactions. Another is the
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Emma by AXA PH mobile app, which is designed to serve as its clients' digital
insurance and wellness partners.

And also, AXA is promoting its services via posting on its social media
pages and creating its own video advertisement. It also has billboards all over
the world. These are one of the newest and most effective ways to promote their
services or products. They also offer people to attend their convention so they
can fully explain or present their services or products.

After the surge of COVID - 19 pandemic, AXA Philippines as one of the

country's leading insurance providers responded to the situation by expanding
the coverage of its existing Global Health Access (GHA) plans to include
epidemic and pandemic illnesses, as well as introducing a new plan option called
the Gold Lite Plus Plan.

The Global Health Access of AXA Philippines is a best-in-class health plan

that offers a comprehensive range of services. From common illnesses to life-
threatening diseases, coverage is available in the Philippines and abroad. Policy
holders benefit from extensive medical coverage of up to P175 million, the
freedom to choose their own doctor (rather than being limited to a network),
cashless transactions, and access to various value-added services both locally
and internationally, such as a concierge.

Financial Strategy

During the pandemic AXA Philippines life insurance company was

bumping up their business because of the clients that wanted to invest in health
care life insurance services. The interest in life insurance is up because of
COVID-19 pandemic and people are thinking about the need for life insurance
and protecting their family in the future. And when a pandemic happens people
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are staying at home and can only invest their time using technology to make it
easier to buy life insurance.

Public health access insurance, including those previously issued with the
pandemic exclusion, will now cover COVID-19 related treatments and
hospitalization. If the insured is eventually confirmed to be contaminated with the
COVID-19, compulsory medical expenses will be paid. All AXA policies that have
included life insurance will cover death benefits as a result of covid-19.

A concern for the health and both workplace quality and safety Clearly,
conditions have been the priority All throughout COVID-19 emergency. As
lockdowns were applied, and has increased in terms of popular interest
concerning wages and benefits, employment security, corporation mental health
support physical and mental wellbeing, and for flexibility on working from home.
Everything else has occurred at a period where wealth inequalities and Poverty
levels already had risen. Several important economies. In the financial arena,
this has led to social media receiving more consideration issues. One survey was
conducted out by JPMorgan enquired as to what the most important ESG effects
of Human capital consistently ranked in COVID-19 and doing business from
home (maybe something about human resources policies that support human
resources growth) came in third.
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CHAPTER 2
INDUSTRY AND FIRM ENVIRONMENT

External Environment

Economic Factors

• Economic Growth
In response to the pandemic, Filipinos have been forced to accumulate
private savings that they can access in an emergency, pushing insurance
penetration in the country to a record 7.6 percent of GDP in the third quarter of
2022. Additionally, the three main economic sectors such as agriculture, forestry,
fishing industry, and services all experienced positive growth in the third quarter
of 2022, with respective growth rates of 2.2 percent, 5.8 percent, and 9.1 percent.

Investment returns will rise, and AXA Philippines might be more

willing to accept a claim when the economy is doing well. AXA Philippines
must find a way to recover the money they have lost when investment
returns fall off during a recession, sometimes by taking out loans or by
carefully examining and rejecting claims and might even process a claim
in hopes of delaying or decreasing the amount that it needs to pay, which
might cause significant hardship to a small business.

• Exchange Rates
Many large insurance companies have expanded worldwide
through mergers and acquisitions as was forecasted after the economic
crises. Due to this, these businesses now face foreign exchange risks,
which puts insurers at risk of a mismatch in the value of their home
currencies and those of the foreign countries from where they are
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operating or in which they are investing. Therefore, such multinational

insurance companies, especially AXA Philippines, face higher competition
in such countries. It can manage such foreign exchange risk through
hedging, forward and future contracts, options, and swaps.

It is also a commitment by means of which the client and insurance

provider are mutually obliged to exchange an amount of foreign currency
at a fixed price at a future date.

• Interest rates
Changes in interest rates are likely to affect long-term products and
as such would be expected to have a higher impact on life insurers than
on non-life insurers. The low-interest rates increase the present value of
liabilities. This is placing significant pressure on insurers since liabilities
must be covered with assets, stressed further by an environment of high
capital requirements. Having low-interest rates for such a long period will
impact life insurers and their financial position as they have long-term
commitments to their policyholders. On the other hand, low-interest rates
for non-life insurers can cause insufficient returns which could have
compensated for weak underwriting results or offset the effects of inflation.

• Inflation Rate
The 7.7 % inflation rate in the Philippines may mean an increase
in the prices of commodities. In connection with the insurance companies,
services offered by the medical industry and other services may set off
the negative inflation effects of the insurance company. This leads to the
life insurance company’s rise in revenues and profits.

Because of high inflation, prices or insurance costs will increase

but the coverage will not. Claims costs will also increase due to industry
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inflation, which might also be a factor that employees will be uninterested

in continuing their insurance. It could lead to a lower disposable income,
and thus could lead to lower overall expansion, which could harm the
businesses and companies, as well as lower consumer confidence.

• Disposable Income
The ongoing conversation has also revealed that an individual's
current income as well as their future anticipated consumption
expenditures play a significant role in determining how much insurance
coverage should be purchased. The provision of insurance is of the
utmost significance to economies worldwide, including those of individual
nations. It is challenging to put a value on the role that insurance plays in
the process of development; however, there is some evidence to suggest
that the promotion of life insurance programs could have a particularly
significant impact on the level of personal savings in the Philippines.

• Unemployment Rate
According to preliminary results, the PSA’s Labor Force Survey
showed that the unemployment rate was at five percent in September
2022, down from 5.3 percent in August and 8.9 percent in September last
year. The number of unemployed persons went down to 2.50 million last
month while the number of employed individuals in September went up
compared with 43.59 million in the same month last year. Meanwhile, the
labor force participation rate declined to 47.58 million in September from
47.87 million in August. Among employed persons, workers in the
services sector made up 94.8 percent of the total, followed by those in the
agriculture sector (23.5 percent) and industry (17.7 percent). The
Unemployment Rate in the Philippines averaged in the January-to-
September period at 5.8 percent is close to the pre-COVID-19 pandemic
level of 5.1 percent unemployment rate in 2019.
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The unemployment rate may affect the insurance industry including

AXA Philippines. It may have a reversal effect on people taking out
unemployment insurance causing people to leave their money in banks
rather than invest in an insurance policy.

Political and Legal Factors

AXA is dedicated to following all applicable rules and regulations wherever

it operates. If there is a disagreement between AXA and its affiliates shall comply
with applicable laws as well as the obligations of these political and legal factors.
Identify acceptable methods for adhering to legal obligations. In the event of a
possible disagreement, please seek advice from your local guidelines or legal
staff.

• Corruption and unfair government regulation.

It is a big risk to the company. AXA Philippines is completely dedicated
to complying with all anti-bribery and anti-corruption laws and regulations
wherever it does business and has established for many years a variety of
procedures designed to guarantee compliance with these laws and regulations by
AXA companies and employees. It performs all business operations with honesty,
integrity, and the highest ethical guidelines imaginable. Anti-Bribery Guidance
complements the relevant sections of the AXA Group Compliance and Ethics
Guidelines and should be read in conjunction with those requirements. All AXA
Philippines firms should follow Anti-Bribery Guidance.

• Government Policy
The government's tax reform program and "Build, Build, Build" plan are
expected to aid the Philippines' economic development. As a national insurance
corporation with operations in several locations worldwide, AXA feels it is
essential to pay its fair share of taxes across the world. They are owed, and its
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company provides economic value. The Group is passionate about being a

responsible taxpayer and collaborates closely and regularly with professionals,
auditors, and tax advisors’ authorities in an effort to guarantee that it pays the
appropriate number of taxes in its best location as well as at the right moment. It's
an AXA Philippines pledge not to utilize non-cooperative countries to avoid
paying taxes on activities carried out elsewhere.

• Political Stability
Effective corporate governance is something that AXA Philippines is
dedicated to upholding within the business. It understands that this can only be
accomplished by the Board, Management, and Employees acting in a way that
enhances the value of the organization and benefits its stakeholders:

● Prevent having a negative influence on human rights by their own

actions, and deal with such repercussions when they do;
● Even if businesses haven't contributed to such consequences, they
should try to stop or lessen any negative human rights effects that
can be traced back to their business relationships, activities, goods,
or services.

This assessment's scope consequently covered the human rights effects

on AXA's personnel and insurance consumers as well as the human rights
effects on AXA's business partners in the areas of investment, insurance,
and procurement. The research concentrated on business partners with
whom AXA has contractual agreements as well as investments over which
AXA has a substantial amount of control in order to take into consideration
AXA's potential to affect compliance with Humanitarian law.

• Tax Law
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The said law will increase the spending capacity or purchasing power of
Filipinos. Tax law stipulates different DST rates for life insurance plans, as well
as changing the tax base, which shifted from the effective rate of 12% on the
premium to a lower rate of 5% on the premium. However, the effective rate for
pre-need plans was raised from 0.10 percent to 0.20 percent, and the DST for
certificates of damages was doubled.

• Labor Law
The Labor Rights Policy at AXA Philippines is based on an analysis we
conducted to determine the Human Rights Affected by Insurance Companies'
Business Activities (i.e. Insurance, Investment, Own Operations) and to establish
Priority Areas for Human Rights Due Diligence at AXA. The foundation for this
evaluation was the "Obligation to uphold Human Rights" outlined in the Ruggie
principles. It is necessary that commercial enterprises

• Foreign Investments Act of 1991

An act to promote foreign investment, prescribe the procedures for
registering enterprises doing business in the Philippines, and for other purposes.
These set restrictions on the level of foreign ownership in local market firms.

• Trade Restriction
The guidelines outlined above also apply to AXA assets purchased through
company-sponsored initiatives like AXA's option plans, share offerings under the
AXA Share Plan, or other equity-based compensation initiatives. This implies
that, unless otherwise stated in the plan's terms or the trading practices of the
Quoted Group subsidiaries:

● AXA Associates may not exercise vested options for options

granted under AXA's Stock Option Plans while in possession of
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inside knowledge about AXA, and they also shouldn't sell AXA
common shares or ADRs obtained from exercising options.
● AXA Associates may not exercise vested options for options
granted under the Stock Option Plans of Quoted Group
subsidiaries while in possession of inside knowledge regarding the
relevant Quoted Group subsidiary, nor should they sell the shares
obtained via exercising the invested options.
● AXA Associates may not at any time engage in any activity with
respect to any capital compensation awards awarded under any
plan or arrangement maintained by AXA or any of its subsidiaries
(including the subsidiaries of the Quoted Group). In just about any
transaction intended to limit the downside risk or place around the
value of such equity-based compensation awards, including stock
options, performance units, restricted stock, performance shares,
or similar awards (or the securities underlying these awards). This
includes, without limitation, any transaction involving the use of
derivative instruments.

This regulation is in effect from the date of grant until the beneficiary
receives the securities backing the award, which could happen in
response to the exercise of an option, the expiration of restrictions on
restricted stock or performance units, the physical delivery of the
securities in the case of performance shares, or other similar events.
Despite the above, AXA's Board of Directors may make exceptions to the
foregoing ban in order to address particular situations where using
derivatives and similar instruments may be required or desirable in
connection with the operation of any equity-based compensation plan due
to applicable tax or other regulations in certain nations.
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Technological Factors

AXA is increasingly using technological advancements and innovation to

improve its business efficiency and effectiveness. Across all industries, there is
a strong rate of innovation, which keeps organizations competitive and forward-
thinking. As a result, AXA has a particular competitive edge in terms of
technology improvements, and the company continues to employ and participate
in innovation processes in order to improve business cycles and operations.

• Internet penetration and Social Media Marketing

The increasing internet usage indicates a progressive and educated
populace, which is advantageous to AXA. It has also taken advantage of the high
internet usage to reach consumers and for marketing and promotional initiatives,
allowing them to connect directly with customers and gain feedback. As a result,
AXA has been able to improve its quality and delivery, as well as engage in
strategic communications and marketing operations, due to the increased internet
penetration. AXA, in particular, is actively using social media to collect client
information and gather insights. AXA also uses official social media pages to
connect with customers, gain feedback, and promote deals.

• Investment in R&D
The nation invests an existing lot both nationally as well as internationally
inside of technology R&D. The major investment helps industries advance by
providing them with access to new, more flexible, as well as effective ways that
belong to conduct business as well as other business activities. R&D can lead to
business developments. These could include new offerings and services,
enhanced procedures, or new methods of interacting with your customers. These
ideas have the potential to increase earnings while decreasing costs. Innovations
can also help your business grow. Individual player adjustments, such as AXA's,
also help to give companies an existing significant competitive advantage.
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Socio-cultural Factors

The insurance industry is tremendously competitive and complicated, and

it's impacted by a variety of interrelated societal issues. The social aspect of the
business is just as significant as the monetary liabilities that insurance
companies have, similar to handling claims, issuing policies, and carrying out
underwriting duties. To successfully deal with their goods and services,
insurance agents need to possess strong interpersonal and social expertise.

• Culture
Every nation has its own distinct cultural principles, beliefs, and
traditions, which impact how people carry as consumers. Businesses can suffer
severe losses if they're unfit to modify their offerings of goods and services in
agreement with indigenous cultural customs. It might be challenging for AXA
management to grasp the complex cultural differences given that the company is
an international one with a culturally distant domestic country.

AXA can establish marketable connections with indigenous market

players that could give in-depth knowledge about cultural principles and
values that affect consumers' comprehension and attitudes about the
brand.

• Values
AXA Philippines also works with numerous associations, including the
University of the Philippines Babaylan and LoveYourself, to promote equality in
the workplace, raise the consciousness of LGBTQ concerns, and speak out
against bullying and harassment. AXA also hosts a yearly addition conference
with a focus on LGBTQ inclusion.
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With all of these exercises, AXA works to be an equal opportunity

employer in the Philippines and throughout the world, fostering a work
atmosphere where all workers are treated with respect and dignity.

• Demographic
AXA will benefit from a higher percentage of the younger population
because it will give the company access to a larger customer base. A younger
population will also give AXA access to more extensively suitable and educated
workers and human resources, enhancing the depth and breadth of the talent pool.

When AXA primarily targets young consumers with its products and
services, two favorable demographic indicators are high population
growth and a rising proportion of the young population. Also, it's critical for
AXA to probe how the host nation views immigration because a friendly
station toward emigrants from colorful artistic backgrounds highlights the
significance of enforcing effective diversity operation strategies.

• Education
A population with higher levels of education is desirable for many
reasons, all of which will be advantageous to AXA. Higher levels of education
mean that AXA will have access to a talent pool with more talented, skilled, and
knowledgeable individuals.

Higher levels of education also mean that the population's

consumers will be more conscious of their shopping and consumption
habits. They will therefore concentrate on responsible consumption, which
will benefit AXA due to its distinct competitive stance and placement.

• Health consciousness.
Based on market research and behavioral assessments of its customers,
AXA has incorporated health-related ideas into its marketing and enhanced the
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characteristics of its products. In addition, AXA has established relationships and

accepted CSR initiatives that emphasize overall well-being, including mental,
emotional, and physical health in response to the expanding amount of health
information.

Task Environment

• Customer

The elderly, small-business owners, and middle-class residents of

our area are AXA's target market and It offers financial stability, aids in
debt repayment, assists in covering living expenditures, and aids in
covering any last or medical costs. The core principle of AXA is that
insurers must have a responsibility to provide clients with accurate and
transparent information, as well as good counsel, the assurance of
confidentiality at all times, equal treatment for everyone, and truthful
marketing messaging. Additionally, AXA organizations give their clients
the tools to communicate with and settle any concerns they may have with
the business, particularly through specialized complaint offices. To get
insightful client input, AXA organizations around the world have installed
customer experience monitoring systems. AXA makes use of these
insights to make sure that the customer service they provide is continually
improved.

• Competition
They compete in markets that are very competitive. AXA now serves as
its customers' one-stop insurance shop by providing general insurance products
including home and auto insurance in addition to life insurance, health plans, and
savings & investment options. AXA also introduced Asset Master, its newest
product line, which enables customers to leave a lasting financial legacy for their
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loved ones by having access to a variety of investment choices in several global

markets. AXA released the e-Policy, an electronic policy feature that enables
customers to obtain a copy of their insurance policies anytime, anywhere online
on any device via the Emma by AXA app, as part of its ongoing commitment to
innovation to better serve its customers.

• Labor force
AXA Philippines seeks high-quality employees, so they will work in a
high-quality environment. This high-quality work environment will further
motivate their employees and assist them in maintaining their morale. When an
employee has a high feeling of morale, the customer they deal with will benefit.
A positive public perception will eventually lead to higher sales and increased
revenue. AXA Philippines may have a lower market share, low sales volume, and
decreased profitability in the lack of these qualities.

• Government Regulation
AXA Philippines is committed to maintaining the confidentiality of data
collected in the course of its business operations. Concurrent with this
compliance, data subjects, whose Personal Information and Sensitive Personal
Information are collectively referred to as Personal Information, will be collected
and processed in accordance with the requirements set forth in Republic Act No.
10173 or the Data Privacy Act of 2012. I am aware of that. “Defined Minimum
Standards” or “DPA”, own internal data protection regulations and standards of
AXA Group. They are based on the European Union's General Data Protection
Regulation or the EU GDPR on Binding Corporate.

• Special Interest Group

Prevention and Management of Overweight and Obesity in Children

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As one of the leading insurance providers, AXA partners with

UNICEF to promote a healthy environment, lifestyle and well-being for
children in the Philippines and also in Brazil. Aside from COVID-19, the
world faces an obesity problem that’s why AXA-UNICEF helps children to
fight obesity for them to grow into a healthy individual. The campaign
focuses on two core things, children’s health and the caregivers' (parents)
food preparation to make healthier food to maintain healthy living. To
make this happen, AXA works with LGU's and NGU's such as the
Department of Health to help them promote their advocacies for health.
Aside from fighting obesity, the program also promotes breastfeeding
because it is the first food that a baby/child need.

AXA and the art industry

AXA supports art culture by creating the AXA Prize, they give artists life
to what they pursue and passion and make them say that they have a
future too. Over the years, AXA has supported two of the largest art
gatherings in the world, the TEFAF and Art Basel to promote and nurture
the world of art. Being an artist, I think it's hard to make a living. That's
why what AXA's doing is a great and big help to our artists around the
world to make them feel that what their passion is is what makes them
feed.

AXA's Climate change and Biodiversity

AXA gives value to life not just for humans but also to our environment,
our planet. Climate change, a global crisis that everyone is affected by, is what
AXA is trying to fight alongside with its employees around the world and its
partner companies that help and conserve our environment and also the habitats
of animals especially the endangered ones. Employees do charity work,
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volunteering to clean and green projects, cleaning beaches, and other projects
that tackle environmental caring. AXA reduces its carbon dioxide footprint,
because that’s what makes our planet warm, to lessen the pollution that they
might give to our planet. The buildings from which they operate are some of the
greatest sources of our carbon footprint. In order to inform their plan for emission
reduction and, if necessary, offsetting, they are working with suppliers to estimate
Scope 1, 2, and 3 emissions. AXA also makes green buildings in London, a
building wherein they use renewable energy resources. They sought to make
their buildings like this around the world in the future to reduce the global warming
that causes climate change.

Competitors

Foreign and Local competitors of AXA

● Allianz PNB Life - Awarded as Philippines Most Outstanding Life

Insurance Company for the year 2022. Allianz PNB Life is a major life
insurer in the Philippines that commenced operations in 2016 as a
subsidiary of Allianz Group. They are a prominent provider of Variable Life
products, as well as a comprehensive variety of Life protection solutions
for individuals and institutions. All of its products and services are intended
to suit every Filipino family's long-term financial planning, wealth creation,
and well-being goals.
● BPI-Philam Life Assurance - For the fourth year in a row,
Bancassurance leader BPI-Philam finished 2020 as the World Finance
Best Life Insurance Company in the Philippines. The international
business and finance newspaper honored BPI Philam's adaptability and
inventiveness, which allowed them to demonstrate calm in the midst of
upheaval caused by the COVID-19 pandemic.
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● Manulife Philippines - An organization that provides life insurance

services. It offers a wide range of services including pension and
education, medical, employee security, corporate, credit life, investment,
student personal accident, and other types of plans. included in their
services.
● Pru Life UK
● Sun Life Philippines - It is a global financial services company that
originated in Canada. They offer different kinds of insurance such as
retirement plans and investment products and services to meet the needs
of both individual and corporate clients across the globe.
● Insular Life Assurance Company - It offers allied financial services
including general insurance, banking, healthcare, lending, and investment
through subsidiaries and affiliate companies in its eponymous corporate
group. Insular Life was once a member of the Ayala Corporation until 1987
when it became a mutual company owned by its policyholders.
●
Internal Environment

Human Resource

AXA Philippines has their own recruitment process; they do a profiling

test that lets anyone decide their career path at the company. For example,
fresh graduates want to apply in the company and determine their desired role.
AXA Philippines has a website that is easier for them to apply for, they just
need to create an account on their website. The company describes their
application process as “FAST, SIMPLE AND EASY”.

AXA Philippines offers internship recruitment. Every applicant who applies

on the company's website will undergo an important interview process. They also
accept fresh graduates to join the company as management trainees which will
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make it easier to find career opportunities by remembering four types of

employees at AXA Philippines.
1. Corporate employees
2. Financial Adviser
3. Management Trainee
4. Sales employees.
Most of the entry-level jobs in AXA Philippines require at least 1 year of
experience, except Finance Sales Manager. The company is open to anyone
with a four- or five-year bachelor’s degree. AXA Philippines has an entry-level
recruitment where fresh grads may have to wait up to 28 days to finalize the
application process.
Generally, AXA Philippines typically involves up to 5 steps when it comes
to hiring applicants:
1. Phone Interview - Fresh grads should expect the phone call to last up to
15 minutes and they must be prepared to answer questions based on their
resume, personality, skills, strengths and weaknesses.
2. On-site interview - After phone interview if you pass you will proceed to
on-site interview.
3. Written Test - This serves as a profiling test for the applicant.
4. Panel Interview - This panel interview will be the interview for the higher
position.
5. Background Check. - Background checking will be the one to know if the
applicant is telling the truth.

The selection process depends on the profiling test submitted and the
answers given in the interview. They also would take into account the resume
and given job qualifications in each career.
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AXA Philippines average annual income is Php 561,500. The actual

salaries for young professionals may be lower, but still above the national
average.
Training and Development Program
The AXA Prime Development Centre in Makati City, the first phygital
(physical-digital) learning and development center in Asia, to assist in
transforming ambitious professionals into next generation leaders. The center is
one of the main initiatives of AXA Prime, a prestigious program that aids
professionals in becoming self-assured and capable financial advisors and
leaders. The AXA Prime Development Center was created to assist
professionals in achieving their full potential and realizing their aspirations while
assisting others through the insurance products offered by AXA. This innovation
focused facility, which is conveniently situated in Makati City, seeks to provide
AXA Prime members with a variety of digital and specialized learning tools as
well as immersive training techniques.

Four main training opportunities are available to distributors at the AXA

Prime Development Center. The Simulation Rooms, which simulate three of the
most typical settings in which distributors meet with potential clients, including a
coffee shop, a living room, and an office, come first. Second, the Presentation
Area contains four 50-inch Smart TVs that distributors can use to offer
presentations to their visitors by simply connecting their tablet's screen to the
TVs. Also easily generated following the presentation are the proposals. To
ensure distributors are comfortable throughout their training, this unique facility
also boasts an Amphitheater with rising levels of cushioned seats and a TV. The
main teaching space also has speakers and a cutting-edge short-throw projector
for the whole training experience.

AXA Prime distributors will go through a thorough training program at the

AXA Prime Development Centre to become the next generation of confident and
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empowered financial advisors and leaders. This will put them one step closer to
success and help them realize their dreams.

Productions and Operation

AXA Philippines relies on operations teams to provide customer services;

it has 149,000 employees serving 95 million customers in 50 countries and
territories. And we have over 7,000 financial advisors in over 40 branches and
over 900 financial executives in over 900 Metrobank and PSBank branches
across the country. People who work in sales for AXA Philippines are confident,
optimistic, reliable, and driven, just like having a job with a good cause. They
work with Metrobank, PSBank, and exciting new vertical channel partners to give
customers professional financial advice and solutions. This is done through a
network of agents, bancassurance, and corporate solutions.

With its team, it operates the very first physical-digital learning and
development center in Asia, the AXA Prime Development Center, an exclusive
training program aimed at transforming professionals into identity, influential
leaders, and financial advisors. AXA knows how important technological
innovations are and that every professional wants to be successful, especially in
these tough times. AXA's new AXA Prime Development Center offers
professional methods for future financial advisors to improve their skills and
achieve their career goals while adhering to the company's mission of helping
people live better lives. Including Emma by AXA, AXA Philippines is committed
to being their reliable partner on the way to achieving their financial wellness
goals. They can now buy insurance online and get access to new features like
the AXA Rescue Line, which helps them in an emergency 24 hours a day, 7 days
a week.
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In terms of productivity, AXA Philippines was one of the first to introduce

bancassurance operations in the country and was also one of the first companies
to offer investment-linked insurance. Charter Ping An Insurance Corporation is
one of the best companies in the Philippines for general insurance. It is operated
by AXA Philippines, which is part of the Metrobank Group, a strong financial
group, and now offers a wide range of insurance products and services through
its growing network across the country. These include fire, motor vehicle, marine
cargo, personal accident, bonds, casualty, and engineering insurance products.
Accredited brokers, agents, car dealers, and partners are spread out across the
country in 22 branches. The official formation of a partnership between AXA
Philippines, GCash, and MicroEnsure was spearheaded by AXA Philippines
President and CEO Rahul Hora, GCash Head of Data and Financial Services
Jean-Francois Darre, and MicroEnsure Country Manager Roger De Pedro,
respectively. GCash Insure is a brand-new insurance product that provides
extensive coverage while remaining accessible to GCash users. The goal of this
alliance is to ensure the financial security of every Filipino. This new and
innovative offering will have its coverage underwritten by AXA.

Marketing Mix

Product

AXA Philippines Plan and Package

A plan is just a plan until they take the first step. AXA Philippines can help
the customers to act with a wide variety of financial products designed to move
them toward their goals, whether they are looking for ways to save and invest,
prepare for retirement, protect their family or business, or offer a competitive
retirement savings plan for employees of the organization. Build the future on a
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solid foundation. Turn their financial plans into reality. AXA Philippines has tools
that could help them get the job done.

Life Insurance

Life insurance is designed primarily to protect a family's financial security

after the client dies. But some types of life insurance can also help build assets
to meet needs during a person's lifetime. So, it can be a smart addition to a
financial plan because it can serve different functions within an overall
investment strategy.

● Term life insurance

● Whole life insurance
● Universal Life Insurance
● Variable universal life insurance
● Survivorship life insurance

Retirement
Retirement may be the most significant saving and investing goal of their
lives. As a result, it is fortunate that there are financial products that encourage
people to begin saving early. Products such as annuities, IRAs, and the
employer's savings plan can let you save for retirement on a tax-deferred basis.

● Variable Annuities
● Individual Retirement Accounts

Investments
Convenient access to a broad menu of competitive investment products
can be critical to the successful implementation of their strategy and working
toward their long-term goals. AXA Advisors, LLC, offers a robust menu of
products from which to choose.
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● Brokerage and Advisory Accounts

● Mutual Funds

Retirement Plans for Employers

Their employees are critical to their organization's success. A
competitive benefits package can be an effective way to attract talent and keep
them happy and productive. By offering ways for them to save for retirement,
they’re playing a critical role in their future success that can benefit their
business today.

● Education
● Businesses
● Government Agencies
● Non-profits

Price

Anyone can invest in AXA's Target Date Fund through MyLifeChoice

Retirement, an expertly managed fund created to assist the client in planning for
their retirement objectives. Consumers can take advantage of AXA's expertise in
fund management and feel secure knowing that their money is being managed
in spite of shifting market conditions. Additionally, MyLifeChoice Retirement
offers three customizable payment options: 7-year pay, 10-year pay, and regular
pay (pay up to age 90).

Up to 30 times their standard annual premium can be added to the client

protection coverage when customized. Their age will continue to determine the
minimum and maximum protection coverage.

In order to give the consumers sufficient coverage for their hospitalization

requirements, Health Care Access Lite is intended to be used in addition to the
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clients current health care plan or personal health fund. There are three
deductible options to choose from: P100,000, P150,00, and P200,000. These
allow them or their current health care plan to pay for their hospital bill in full
initially.

Place

AXA Philippines' products are available in an area that provides a

competitive advantage and is easily accessible to all clients throughout the
country. It distributes its products throughout the nation via a multi-channel
distribution system. AXA products are distributed through Bancassurance,
agents, store branches, and corporate solutions.

● AXA Corporate Headquarters - G/F & 2/F 1286 Philippine AXA Life Centre
Sen. Gil Puyat Ave. City of Makati
● AXA Life Service Center consists of fifty (50) locations, including the
operation office.
● Branches of Charter Ping An - Twenty-four (24) stores, including the
satellite office.

Promotional

Digital Marketing. In order to interact with customers directly, AXA uses its
social media presence in Facebook, Instagram, and YouTube. AXA can better
understand its consumers' wants and demands owing to their direct engagement
and contact. The company also uses this feedback and incorporates it into its
wider marketing and organizational plan. It also runs a corporate website that
features company and product information as well as details on any current
promotions and deals.
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Reward Programs. Each transaction is put into the loyalty card by AXA and it’s
valued for points against the products' monetary worth. The loyalty card can be
purchased or is given complimentary by AXA on high valued purchases.

Community Influencers. AXA seeks for strong, self-assured people to serve as

brand ambassadors in their communities. It then gives these brand ambassadors
and community influencers with its product line and allows them to try it out for
themselves to experience the benefits. The 2021 US Women's Open champion
and current eighth-ranked golfer in the world, Yuka Saso, is a Japanese-Filipina
professional golfer who has joined AXA Asia and Africa as one of its
ambassadors.

The NBA and Liverpool Football Club are both of AXA's major official insurance
partners in the Philippines, and this is the company's newest sports sponsorship.

Traditional marketing. AXA strives to increase consumer recognition of its

brand. It also creates TV commercials and newspapers. Slice of life components
and traits are now a common feature of commercials, which all have an emotional
appeal. The functional advantages of the product are also highlighted in AXA's
TV ads, their TVC was a girl who was an AXA survivor. She got engaged six
months ago, was promoted four months ago, received her cancer diagnosis two
months ago, began her six rounds of chemotherapy, and had her health plans
covered by AXA. https://youtu.be/GeQbjpbjncE
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Financial Statement
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The financial statements of AXA Philippines have been prepared in

accordance with Philippine Financial Reporting Standards (PFRSS). Apart from
the deployment of new standards beginning in 2021, the accounting procedures
established are consistent with the prior fiscal year. The company has not
implemented any established but ineffective standard, interpretation, or
modification.

They audited Charter Ping an Insurance Company's financial statements,

which included the statements of financial position as of December 31, 2021, and
2020 on the statements of costs and revenues. Comprehensive income
statements and cash flow statements for the fiscal years ended, as well as
financial statement notes that offer a description of major accounting policies.
The accompanying financial accounts, in our opinion, accurately portray the
financial status in all essential areas. The Company's position as of December
31, 2021, and 2020, as well as its financial performance and cash flows for the
fiscal year ended at the time, were calculated in accordance with Philippine
Financial Reporting Standards (PFRSs).
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CHAPTER 3
SITUATIONAL ANALYSIS

Strengths

S1. Loyalty Rewards

AXA Philippines gives rewards that offer benefits and perks to help their
valued customers towards their life goals more satisfying. This program is only
available to AXA's high value customers that have at least one insurance policy
with a P100,000 annual premium equivalent (APE).

S2. Global presence

With 149,000 workers serving 95 million clients in 50 countries across the

world, the AXA group is a well-known global leader in insurance and asset
management. In the year 2021. IFRS revenues totaled Euro 99.9 billion, with
underlying earnings totaling Euro 6.8 billion.

S3. High Level of Customer Satisfaction

Customer satisfaction is one of the company’s achievements. AXA has

earned the trust of over 2 million customers and has a very strong customer
relationship management team that has made it highly satisfied with current
customers and an excellent reputation among potential customers.

S4. Strong Brand Portfolio

AXA gives quality services that can help to gain support and more clients.
Clients will start to trust a brand when it is known for delivering good service and
meeting the customers satisfaction. This can improve client loyalty and rate of
return. Also, a strong brand portfolio prioritizes key elements and markets vital to
its success.
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S5. Offers Solid Return Investment

Produce Huge Returns Despite economic difficulties, AXA has been

successful in producing and earning huge returns by completing new projects
during the COVID-19 pandemic. It indicates just how assets were utilized in order
to make income, which motivates the company to maximize its potential.

Weaknesses

W1. Lack of Social Media Presence

One of the most important aspects of businesses today is having an online

marketing strategy or a social media presence. As a matter of fact, these present
times, a lot of firms find their success on social media because it is the most
effective way to promote their brand. As for AXA Philippines, they need to invest
more in advertising their product on social media platforms to enhance their
communication with their loyal customers and gain potential customers.

W2. Lack of brand recognition

In comparison to its competitors, AXA lacks brand recognition.

Recognition of the brand is extremely important, particularly in the insurance
industry, because the more consumers recognize the brand, the more successful
it will be. As for AXA Philippines, some people are unaware of its existence.
When people say "life insurance," the first brand that comes to mind is one of its
competitors.

W3. Customer Complaint

AXA Philippines receives a lot of negative complaints every year about

how its policies are being carried out. Customers have also expressed
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disappointment about the time it would take to settle their problems. Moreover,
this damages the company’s reputation.

W4. Data management

Insurance companies must gather massive amounts of data in this growing data-
rich environment in order to improve performance, reduce risks, and satisfy
consumers' expanding expectations. However, this will only work if the data
entering process itself is accurate to begin with. For instance, numerous claims
are manually entered into policy systems with a lack of care for details, such as
missing descriptions and incorrect categorization in relation to a standard
classification. Unfortunately, even standard data is difficult for many insurance
companies to process and analyze.

Companies must learn to adapt with the advancement of software technology. In

order to keep the data or information, insurance companies must
innovate/improve their data management system to keep the information secure
and safeguarded.

W5. Low interest rate

Reduced future liabilities to policyholders is another way that lower interest

rates might reduce an insurance company's liabilities. Lower interest rates,
however, may also make the insurance company's products less attractive,
which might cause a drop in sales and, therefore, a reduction in the amount of
premium income the insurance company has available for investment. Whether
the decline in liabilities is more or less than any corresponding decrease in assets
will determine the net effect on the company's profitability.
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Opportunities

O1. E-Commerce and Social Media Oriented Business Models

E-commerce business model can assist the AXA Philippines in forming

with local distributors. Social media growth can help AXA in lowering the cost in
entering new markets and reaching out to customers with a significantly lessened
marketing budget.

O2. Future Trends

For the next 10 years, the insurance industry will be moving from
traditional to more customer-centric products. In the post-pandemic era, due to
personalized services, the products are given based on information collected
from external sources and devices.

O3. Internet Penetration (elaine)

With the use and commercialization of the Internet, the combination of

insurance and the Internet has been constantly improved. Nowadays, devices
utilizing Internet technology are universal and produce a large array of data.
Leveraging this massive amount of data gives insurance companies significant
business opportunities in terms of customer relationship, information perceptions
and individualization.

O4. Product Innovation(elaine)

Innovative value plans aren’t just about products; they join in insurance
protection and preclusion, customer service, and distribution and marketing. It
will serve as a major opportunity to develop their existing and create new
products and services that can attract clients.
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O5. Partnership

It opens opportunities to collaborate with other organizations and

encourage consumers to try AXA’s products and services.

Threat

T1. Competition

Growing strengths and the reliability of services of local distributors also

presents a threat in AXA Philippines as the competition is paying higher margins
to the local distributors. According to the study of consumers, insurance
providers with names they were familiar with were considered to be safer than
those unnoticed. Overall, despite the participants learning that the well-known
insurance companies had a bad reputation, a bad safety record, and were
headquartered in developing nations, this belief persisted. In other words, a lack
of awareness exerted more influence than three risk factors acting
simultaneously.

T2. Data Breach

Recent years have seen a sharp rise in cybersecurity issues for

businesses in all sectors. Blackswan Cybersecurity co- founder and COO Chris
Roach claimed that online merchants had been particularly badly struck by data
breaches. AXA Philippines should enhance the growing importance of cyber
security, which can shield them from the expenses associated with card payment
penalties, crisis management, public relations, and data breach notice and
cleanup.
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T3. Seasonal Demand

There is a seasonal pattern to the demand for highly profitable products,

and even improbable occurrences during the peak season have the potential to
have an effect on the company's profitability in the short to medium term.

T4. High Inflation rate

Higher inflation rates can increase the cost for the company in providing
services. Prices or insurance costs will go up because of inflation, but the
coverage will stay the same. Due to inflation in the industry, AXA Philippines
claims costs will also go up, which could be another reason why clients won't
want to keep their insurance.

T5. Consumer Behavior

Changes in how people buy things online could be a threat to the current
supply chain model of AXA Philippines, which is based on physical infrastructure
such as public facilities, number of facilities, amenities and resources, how they
are spread out, and the right mix of facilities to meet the health needs of the
population.
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TOWS MATRIX TABLE

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Chapter IV
Alternative Courses of Action

Alternative Course of Action #1

W2T1: Improve Brand awareness to help customers understand and
become comfortable with their products. And create better trust to become
more successful in the future.

Advantages
Brand awareness is the first step in the marketing funnel and an important
foundation to eventually acquire the consumers. Brand awareness refers to the
individual's ability to recall and recognize the businesses. This process can help
AXA’s to sustain the brand top of mind with the customers. If people are aware
of the AXA’s brand it will become familiar with.
Brand awareness promotes a brand image and identifies it from
competing brands. Companies with a high level of brand awareness are more
likely to produce sales because consumers tend to purchase familiar brand
names than unknown ones. When it comes to differentiating between competing
companies, brand awareness is critical when launching new products and
services. The strength of the brand's appearance in consumers' minds
determines the function of brand awareness in creating brand equity. According
to research, a high level of brand awareness increases brand choice, produces
stronger consumer loyalty, and therefore enhances brand image. The goal is to
improve customer loyalty and develop brand recognition in the target market.
Marketers develop strategies to ensure that their brand is not forgotten by clients
but rather rises to the top.
The improving brand awareness is to help AXA life insurance to achieve
a range of business objectives and goals. It can expand the audience; promoting
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is the foundation of all marketing efforts that have to rely on, from social media.
It makes people aware about the brand and what they offer, it can gain their trust
and influence their decision-making process, in order to get more sales.

Disadvantage

One disadvantage of improving brand awareness is the high cost involved

because publicity and advertising are not easily created and firms are required
to spend large amounts on publicity or advertising because creating an
advertisement requires the assistance of professionals.

Alternative Course of Action #2

W1W2O3: Create a Media committee that focuses on enhancing the digital
structure and will improve brand recognition and popularity.

Advantage
AXA Philippines can use social media marketing because it is a good
resource for them to interact with their previous clients and attract new
customers. To promote themselves as a trustworthy sector authority, they can
advertise sales, provide information on different policy types, and give
recommendations. Also, with the help of social media marketing, AXA Philippines
can expand their readership with interesting content, create connections, boost
trust with endorsements, and increase their lead generation through social ads.
A successful digital marketing strategy may enhance its brand awareness and
loyalty, generate qualified leads, and generate income. Digital Marketing may
offer to organizations looking to use social media marketing services to promote
their products and services.
To increase social media visibility, the large number of consumers looking
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for services like insurance conduct internet research prior to choosing a provider.
So, if an AXA prospective customer searches online and finds AXA website or
advertising content to be highly relevant to their search query, the insurance
company will probably be among the first insurance firms they will click on. They
are far more likely to do business with you as a result, or at the very least view
your website. The practice of enhancing a website or web page's online exposure
in a search engine's unpaid search results page is known as search engine
optimization, and it is based on this and services.

Disadvantage
Building a social media team will need a huge budget that can invest in
an expert social media specialist that will focus on the insurance industry. This is
also a gamble because it may succeed or fail. Also, AXA Philippines will receive
negative feedback, information leaks, or hacking using social media. In addition,
AXA has a chance of having rude or inappropriate behavior on their social
networking site.
High level of competition, although internet marketing allows you to
access a worldwide audience, you are also up against international rivalry. The
numerous messages sent to consumers online might make it difficult to stand out
from the competition and attract attention. In terms of Security, there are a variety
of legal considerations around the collection and use of client data for the
purposes of digital marketing, including privacy risks. Take care to abide by the
laws governing data protection and privacy.

Huge cost, it takes a lot of money to promote and advertise a large firm
like AXA in the insurance company sector, especially when implementing digital
structure. The largest platform on the internet is social media. There are many
other ways to promote on social media, including through websites, YouTube
channels, vloggers, and celebrities. However, having a well-known celebrity or
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YouTuber implies paying a larger talent fee or collaboration fee. It is challenging

to decide who will carry AXA because social media brings up a lot of problems.

Alternative Course of Action #3

S3O2: Ability to adapt new trends that can open up great opportunities for
AXA. To build new revenue streams and diversify into new products.

Advantage
People of today’s generation are more likely to follow developing trends
and seek out products/ services that will benefit and assist them. Trends can
forecast the future based on current trends and the need for a reliable source of
change, as well as deliver cautions about what is right and what is incorrect.
Knowing what’s trendy and what’s not will aid the corporation in developing new
business concepts. This will provide data for improved long- term planning
decisions and solutions to future- proof the company.

AXA Philippines must take account of new trends in the insurance industry
to ensure that their customers will continue supporting their products and retain
loyalty since they satisfy their needs. This can lead to coming up with marketing
plans to encourage people to choose them. And this may cause increased sales
and reach new markets that would be beyond the company’s expectations.

With the marketing strategy of AXA Philippines, they have the ability to
use their resources to solve problems and achieve goals. It involves maintaining
a positive attitude that any difficulty can be solved. This allows them to assess
their position in the market or in the insurance business, as well as establish
marketing strategies to encourage people to pick them or to keep their customers
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who would benefit from more innovative products and even better insurance
provider services.

Disadvantage

Uncertainty abounds when it comes to new products and services, from

figuring out unproven production techniques to exposing customers to potential
options they may or may not find appealing. If AXA’s product development
strategy is unsuccessful, the business will have to absorb the investment that
was made because there won't be any profits to cover the costs. There seem to
be trends that aren't sustainable since the demands and desires of the consumer
do not align with the product, proving that having new trends does not always
have a positive outcome. There have been cautious consumers who favor
established products and services over trends.

Even though the development of new products and services is a proactive

response to a landscape of changing consumer preferences, those preferences
will continue to change even if you are developing your new products.
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Chapter V
Recommendation

AXA Philippines is a life insurance firm that also provides retirement,

investment, and retirement programs for employers. We, the researchers,
strongly propose alternative course #1, which is Build Brand awareness to help
customers understand and become comfortable with their products. And create
better trust to become more successful in the future, so that AXA is more
recognized by consumers and potential customers.

Improving brand recognition will empower AXA to be at the top of clients'

minds when they are ready to study and acquire a policy. Furthermore, this
technique will assist AXA in increasing brand recognition and gaining more
clients in order to compete with their competitors.

● Partnership with influencers

An early modern, content-driven marketing campaign that utilizes

the traditional celebrity endorsement. This will benefit AXA Philippines to
stand out from the insurance crowd, gain credibility, build a community,
and expand its customer base. To build more brand recognition and
strengthen customer assurance.

● Word of mouth

Word of mouth advertising is advantageous since it works to attract

customers, advertise services and products, raise brand awareness, and
develop a loyal client base. Many businesses use tactics to encourage
consumers to share pleasant experiences and endorse their services or
even products.
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Work with the influencers who have proliferated in recent years. An

influencer may raise a brand's profile significantly and interact with
audiences that your business might not otherwise be able to reach. Think
about influencers that potentially have a fan base that includes people in
your target market when you search for them.

And, AXA Philippines can hire agents; agents can design a referral
program to get customers to promote services and products and spread
awareness about AXA. There are a number of online referral systems that
they can use to make it easier to set up this kind of scheme. But hiring
agents must be hiring those people that are experts in this kind of work.
They need to be always on top of their game on spreading and selling
AXAs products and services.

● Create unique Content advertisement

(Example of the witty commercial)

State Farm Can i Get a Hot Tub

Allstate mayhem commercial - Dean Winters as Teenage Girl in

Pink Truck

AXA Philippines can use Unique Witty Commercials, because nowadays

a lot of Filipino Netizens are into this kind of content commercials. It attracts
attention and can be a rumor on social media. In that case, the AXA insurance
company brand will be known by the consumers as an insurance company here
in the Philippines. By that AXA can accumulate a lot of customers considering
this kind of advertisement.
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Chapter VI
Plan of Action

Improve Brand awareness to help customers understand and become

comfortable with their products. And create better trust to become more
successful in the future.

AXA Philippines must improve their brand awareness by promoting its

brand through digital platforms such as Facebook, YouTube, Twitter, Tiktok, and
Instagram. Creating unique content advertisements, partnership with influencers,
and doing Word-of-mouth will help the company to be recognized by its potential
customers.

Since AXA Philippines is not really known by the other people, they need
to improve the brand awareness, and the main objective of this plan is to
recognize the AXA brand and be the top-of-mind of the consumers if they are
ready to purchase insurance.

(Sample poster for partnership with influencer)

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AXA does not have a Filipino brand endorser, they must collaborate with
influential people, such as Team Kramer, who have a large audience in their
social media platforms. Many viewers enjoy and relate to the content that they
produce; all of their content is available to all parents, adults, teens, young, and
young professionals because their videos are more about family, health, and life,
to which everyone can relate.

Because Team Kramer is one of the most influential people in the

Philippines, with a large audience on digital platforms, we expect that the brand
will be recognized more by its prospective customers. It can also help the AXA
brand because this family is well-known in the country.

Kramer Family

Father: Douglas Kramer

Mother: Chesca Kramer

Children: Kenda Kramer, Scarlet Kramer, and Gavin Kramer

YouTube Subscriber: 900,051

Facebook Followers: 11,000,000