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
 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.
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.
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
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;

(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.

(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 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.
 ● 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 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.

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:

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:

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 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
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.
 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
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
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.

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
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
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
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.

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.

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.

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
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 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

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, 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.
● 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 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.
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 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.

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 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.

● 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 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.

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

Financial Statement
 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).

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.

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
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.

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.

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.

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.

TOWS MATRIX TABLE

 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 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 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
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 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.

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.

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.

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)

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

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