Abstract

The case discusses the organizational restructuring moves undertaken by one of the world's largest life/health insurance companies, Axa, in the late-1990s. It details the reasons behind the France-based insurer's decision to adopt a new customer-oriented business model in response to the changing industry dynamics and customer preferences. Thereafter, the case discusses the restructuring exercise that involved the creation of an entirely new framework to manage the business. The rationale behind joining together Axa group's reinsurance company (Axa Re) and two other companies (Axa Global Risks and Axa Cessions) to form the new outfit, Axa Corporate Solutions, is dealt with in detail. The case moves on to examine the problems faced by the new company in the wake of the September 2001 terrorist attacks on the US and various other issues. Finally, the next phase of restructuring is elaborated upon, wherein Axa Corporate Solutions was dismantled and Axa Re brought back.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Dynamics of the global insurance/reinsurance industry.

Keywords

AXA, Organizational Restructuring, France-based insurer, Axa Corporate Solutions, Axa Re, Axa Global Risks, Axa Cessions, New Business Model, global insurance industry, Strategic Moves, Business Philosophy, Axa Courtage, Axa Conseil, Axa Assurance