Budget Direct boldly buys ad space on ST newspaper to lure AXA employees and customers

A day after it was reported that AXA Singapore is leaving the motor and commercial insurance business, Budget Direct Insurance published a print ad on The Straits Times targeted at AXA employees and customers.

"For employees at AXA Singapore, we welcome you to consider joining us," the company said and included a contact email. It also urged consumers who have a motor insurance policy with AXA Singapore to get a quote from Budget Direct.

Budget Direct is a digital insurance company for car, motorcycle, and travel. It is part of an international group that provides insurance solutions for millions of policyholders worldwide. The group's brands include EasyCompare in Thailand, Compare the Market in the UK, Budget Direct in Australia, and Telesure in South Africa.

The ad placement comes after ST reported on AXA Singapore's move to exit the motor and commercial insurance business after the company's acquisition by HSBC Life Singapore earlier last month. Citing its sources, ST said the general insurance unit of AXA will "go into run-off" before being absorbed into the HSBC Life Singapore business. According to ST, a run-off is "the complete cessation of writing new and renewal insurance policies while managing existing policy obligations".

This news raised concerns among AXA employees who were reportedly anxious about the fate of their jobs should AXA's general insurance arm be dissolved upon integration with HSBC. According to ST, the integration is expected to take place in the second half of 2022.

Budget Direct's spokesperson told MARKETING-INTERACTIVE that the ad has drawn quite a bit of interest from candidates who have experience working with AXA Insurance Singapore. They have come forward and applied as a direct result of seeing the advert in ST.

"We are hopeful that many more candidates, and not just AXA employees, will consider applying too. We hope the advert will get the attention of good people who are looking for a great place to grow their career; and want to join an exciting, forward-thinking business that is part of a global insurance group. We are also a company that operates like a family business that really does care," the spokesperson explained.

When asked about the monetary value of the ad, Budget Direct said the total creative and media costs for this advertisement were outweighed by the value the company saw from this important brand message of being there to support both team members and customers, potentially affected by AXA's announcement.

"We understand the AXA team are highly trained and recognise the value they could bring our business and our customers - which makes the cost of this placement an easy investment decision," the spokesperson explained.

Meanwhile, Li Choo Kwek-Perroy, managing director, Life Business at AXA told MARKETING-INTERACTIVE that the ad on the local newspaper by Budget Direct was courageous and a bold one - and not one seen in the Singapore market often. Kwek-Perroy added that the points made on the ad address what many players in the market are thinking such as, “How do I get the customers and how do I get the teams?”

“This ad nails it all at one go. The message is loud and clear. Quick to launch, copy-led, brave and passionate. I am happy for the AXA team and for the customers. There is nothing more uplifting than knowing you are wanted and someone is dying to partner or service you. And you have a choice,” Kwek-Perroy added.

Kwek-Perroy is a veteran in the insurance and marketing industry. She took on the role at AXA Insurance Singapore last year to lead the company’s Life strategic business unit including product, claims and underwriting, as well as the Life distribution channels, reporting to Jean Drouffe, CEO. Prior to joining AXA Insurance Singapore, Kwek-Perroy was with Manulife Singapore, where she held the role of chief transformation officer and chief customer officer for over three years. In her three years with Manulife, Kwek-Perroy has been involved in several out-of-box campaigns and forging new partnerships.

The news of HSBC Insurance acquiring AXA Insurance (AXA Singapore) for US$575million first broke late last year. The proposed acquisition, which is subject to regulatory approval, is a key step in achieving HSBC’s ambition of becoming a leading wealth manager in Asia, by expanding its insurance and wealth franchise in Singapore. Singapore is a strategically important scale market for HSBC, and a major hub for its ASEAN wealth business, said the compay.

Currently, AXA Singapore is the eighth largest life insurer in Singapore by annualised new premiums, fifth largest property and casualty (P&C) insurer and a leading group health player. AXA Singapore had net assets of US$474 million, annualised new premiums of US$85m, gross written premiums of US$739 million and profit before tax of US$23 million for the year ended 31 December 2020.