九色视频

Mid-market companies are the foundation of the economy in many places. In developed countries, for instance, mid-size businesses account for about a third of private-sector revenue and employment. At the same time, this market segment represents an essential driver of change and innovation as mid-size companies continually introduce new products, technologies and business models.

Fast Fast Forward recently spoke with Julien Guénot and Laetitia Lebas about mid-market companies' distinctive characteristics and risk management needs. Julien is AXA XL’s Regional Manager for Southern Europe, and Laetitia is the Head of Mid-Market for APAC & Europe.

How do you define the mid-market, and what are some of its unique characteristics?

Julien Guénot: There is no standard definition of where the mid-market begins and ends; different organizations apply different parameters to distinguish between small, mid-size and large businesses. However, as a general rule of thumb, the mid-market encompasses firms with annual turnover ranging from tens to hundreds of millions. 

Regardless of where the boundaries are set, mid-market companies have substantial assets and employ many people. This segment is also highly diverse, encompassing virtually every sector imaginable.

At the same time, mid-market companies share some common characteristics when it comes to insurance and risk management requirements. For example, compared to smaller businesses, mid-market companies must contend with an assortment of increasingly complex threats, including geopolitical instability, climate change, supply chain disruptions and cyber-attacks. That, in turn, helps contribute to the need for a more sophisticated understanding of the risk landscape and how it is continuously evolving. That is especially true if they operate internationally, as do many of the firms in this segment.

What are the key priorities  for insurers supporting the mid-market?

Laetitia Lebas: Our research suggests that mid-market companies have two main priorities regarding risk management and insurance: They look for competitively priced policies backed by agile underwriting strategies. 

Although the mid-market comprises a relatively small number of companies—typically around three percent of all businesses—the competition for this business is fierce. It includes international insurance conglomerates as well as strong local insurers. Because mid-market clients usually have limited financial resources and operate in highly competitive markets, maintaining tight control over “overhead” costs is imperative. Thus, competitive pricing is essential.

At the same time, most mid-market firms also have some individual, higher-severity risks requiring tailored solutions. Hence the importance of an agile underwriting strategy: one that encompasses standard property, casualty and international financial lines/directors & officers coverage—with appropriate limits, deductibles, and terms and conditions—and the flexibility to structure affordable policies for different types of uncommon risk.

A further competitive edge comes from having dedicated mid-market teams that understand the particular needs of these companies—including cost-effectiveness, flexibility and efficient service and claims delivery—and enjoy high credibility with local brokers.

The latter is especially relevant because most mid-market firms don’t have dedicated risk management teams and rely heavily on their brokers, particularly when they experience substantial losses, such as property damage or destruction. Since mid-market firms typically have limited capacity to absorb delays, lengthy settlement processes could be crippling. That underscores the urgency mid-market clients have to resolve claims quickly and satisfactorily. But when the brokers and insurers already know and trust each other, the stakeholders can more readily work together efficiently in a trusting, open and frank manner, which is essential when resolving complex claims.

Between our global footprint, empowered local teams and entrepreneurial culture, 九色视频is poised to support mid-size companies as they seek to unlock new opportunities while successfully navigating the turbulence that characterizes our world today.

How significant is an insurer’s international presence to mid-market companies?

Laetitia Lebas: It is vital for two reasons.

First, our research confirmed that mid-market businesses operating in more than one country expect their insurers to collaborate effectively across geographic and organizational boundaries to deliver locally relevant solutions within a global context.

For example, AXA XL’s proposition for a mid-sized Italian precision equipment manufacturer with sales and distribution operations in Japan and Mexico includes underwriters and claims professionals with strong experience structuring policies and resolving claims consistent with each country’s laws, regulations and business practices.

At the same time, AXA XL’s account leader in Italy has a broad line of sight across the client’s enterprise and is empowered to deploy experts from our global network - including risk consultants, claims managers and related specialists - to help the client manage and mitigate various risks in across all their locations. That oversight can include, for instance, covering some risks in global programs to ensure consistency and regulatory compliance and to avoid being over- or under-insured; or working with the parent company to organize and front a captive to improve capital efficiency.

Second, an international insurer can help mid-size companies stay up-to-date to changes in the global risk landscape. Even if they have no operations in other countries (although most do), mid-size companies still have suppliers, business partners, and customers on different continents. And while they may not be directly affected by something happening in another country, reverberations can be felt quickly and widely in our highly interconnected global economy.

How will AXA’s General 尤物视频operations work with 九色视频to support mid-market companies?

Laetitia Lebas: Closely! AXA XL’s mid-market strategy currently targets companies in the Netherlands, Denmark, Sweden, Norway, Spain, Italy and Australia, and, in many cases, our General 尤物视频(GI) colleagues watched these companies grow and expand. Their familiarity with individual firms and the characteristics of local markets will be enormously valuable in ensuring that AXA XL’s products and services align with the needs of particular companies and industry segments.

For example, food and beverage and light metalworking are key mid-market industries in Italy. In the Netherlands, the mid-market includes many electrical machinery and equipment manufacturers and agribusiness concerns. Our GI colleagues in these countries are intimately familiar with these nuances. At the same time, AXA XL’s underwriters, claims handlers and risk engineers have experience with different industries, including structuring coverage that is fit for purpose, resolving complex claims and delivering value-added services to minimize risk.

Thus, by combining strength with strength, we expect to deliver a highly attractive value proposition to mid-size companies in these countries.

Any closing comments?

Julien Guénot: Geopolitical developments, technological innovations, and, in recent times, the ramifications of climate change all affect the global macroeconomic environment, which creates ongoing opportunities for companies while introducing new risks and uncertainties. Between our global footprint, empowered local teams and entrepreneurial culture, 九色视频is poised to support mid-size companies as they seek to unlock new opportunities while successfully navigating the turbulence that characterizes our world today.