Amanda Blanc has stayed on message, putting decision making into the hands of local branches and giving brokers what they really want
Back in April, AXA Commercial chief executive Amanda Blanc’s message to brokers was loud and clear. “We are here, we are ready to talk to you,” she said in a video interview with Insurance Times.
Now, more than three months have passed, and it appears that Blanc has been true to her word.
Today, insurancetimes.co.uk revealed that AXA is planning to open new branches in two key regions later this year.
Blanc has identified Bristol and Newcastle as two locations where she thinks the insurer can get closer to the broker market. Both regions have a thriving independent broking community and have a tradition for local trading, so AXA’s choices should come as no surprises considering Blanc’s game plan.
“We want to build our proposition around regional independent brokers,” said Blanc back in April. “We will put all the decision making back into the local branches. We are completely committed to the local branches, there will be no closures.”
AXA will begin to discuss its plans with brokers shortly, but it is unlikely to face much objection, with many praising it’s newly found logic.
“I’ve been really impressed with Amanda Blanc since she joined AXA,” a top 50 broker boss told me recently. “It [the company] needed it. I think she will do a super job.”
Blanc’s final words in that short video were ‘AXA has woken up again’ - and it appears so. If the insurer keeps on giving brokers what they want, the AXA gravy train will continue to roll.
NFU bonus scheme hit profits
NFU came out fighting against its poorly performing motor book today. As revealed on insurancetimes.co.uk, an Ernst & Young motor report revealed that NFU’s net combined ratio deteriorated from 130% in 2009 to 135% in 2010, compared to a market average of 116.4%.
This just a month after we revealed that its 2010 profits nosedived 57% to £159m year-on-year. The insurer also made an underwriting loss of £150m in the year, deteriorating from an £118m loss in 2009.
NFU blamed the net COR result on its mutual bonus scheme, which paid out a double bonus of up to 20% to its members in its centenary year. A great result for its members. But how will NFU’s generosity fair in the long run?
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