France-based Axa and World Bank's private investment arm International Finance Corporation (IFC) are reportedly planning to enter into a public-private venture to promote insurance products in developing markets.
Through the new partnership, the organizations aim to develop new products such as life, accident and crop insurance, which can be distributed through mobile phones.
Axa deputy chief executive Denis Duverne was quoted by Financial Times as saying: "Clearly, if you enter into a market with IFC, in terms of government relations it is a plus as there is a direct relationship with finance ministers.
"A large part of our future development will be in high-growth markets, and we believe that partnering with IFC will allow us to enter some of them earlier."
In addition, both companies are planning to design products, specifically for women, basing on an estimate that the female economies of China and India are expected to account for $5trn of gross domestic product value annually by 2020.
Axa intends to use IFC’s political and business influence to enter into new markets such as Egypt. The IFC operated in more than 100 countries.
Dimitris Tsitsiragos, who leads the IFC’s international investment operations, was quoted by the news publication as saying that the partnership will help in promoting growth and foster a well-managed economy in developing countries.
Already, both the organizations had invested in UK-based microinsurance specialist MicroEnsure.
Image: The International Finance Corporation headquarters, designed by architect Michael Graves, located at 2121 Pennsylvania Avenue, NW in the Foggy Bottom neighborhood of Washington, D.C. Photo: courtesy of AgnosticPreachersKid.