After announcing the completion of sale to HSBC earlier in February, AXA recently made the decision that its general insurance (GI) arm, along with its motor insurance, will be heading into a run-off. This means that while AXA will continue to honour any ongoing insurance coverage and claims for the next 1 year till all existing insurance policies expire, no new businesses or renewals will be underwritten.
With AXA being a sizeable player in Singapore, this will no doubt leave a vacuum in the GI space over the next 12 months, on top of the fact that many current employees in AXA GI will most likely be laid off as the business winds down. This will no doubt lend to feelings of anxiety and worries over the coming months for this group of employees as they await more information from the management to see what kind of compensation they will receive for their years of service, as well as to look for new roles in other general insurers.
For AXA GI policyholders, this news also spells trouble for them, as claims processing could be affected by the outflow of personnel. For those without claims, it means that they will have to source for quotes from the other insurers come renewal next year. Some policyholders may face higher premiums upon renewal, especially if it’s a category that AXA specialized in. Existing AXA policyholders may contact MAKinsure to assist them with their renewals through next year, by sourcing and quoting from different insurers in the market. Do leave us your insurance details so we can work on them early when the time comes!