Prevention Protects Individuals, Finances

Q: What characteristics differentiate Mexico’s insurance market from others where AXA operates?

A: The insurance market in Mexico is underpenetrated. The conventional measure of assessment is the percentage of insurance premiums relative to gross domestic product (GDP). In Mexico, this indicator has remained around 2% for the past two decades and this value rarely surpasses 2% of actual GDP. In developed economies, especially in the European Union, this percentage is often in double digits, consistently exceeding GDP. This highlights a clear opportunity for growth and development in the insurance sector in Mexico.

Only a few Mexicans have health coverage. Less than 10% of the population has access to private health insurance, and half of those are provided by employers. So less than 5% of the population is able to buy private health insurance. In AXA Mexico, we have about 1.3 million clients in Health, around 19% of the market share. 

Q: Why should Mexicans strive to acquire insurance as early as possible? 

A: The average age individuals buy health insurance tends to hover close to 50 years old. They buy it because they think they are entering an age where they are more prone to get ill. The reality is that insurance should be purchased at a young age. This maintains a healthy insurance pool, ensuring that it contains individuals who do not need to use their insurance in order to subsidize those who do. The problem when young individuals do not buy insurance is that once they become ill, they will not be granted access to any insurance, the companies conduct pre-existing condition screenings precisely to prevent adverse selection. 

This dynamic ensures the health of the insurance pool. Young individuals are not insuring themselves, so the pool increasingly comprises individuals who are at risk of falling ill or are already ill. Consequently, premiums rise. We encourage the people to get insurance as soon as possible to be protected and prevent a financial disaster.

Q: What prevalent health risks should prompt Mexicans to consider obtaining insurance coverage?

A: The risks revolve around growing medical inflation. Treatments are becoming more expensive to administer due to the introduction of new medicines and technologies, which are also costly to access. Consequently, these initial expenses become even pricier. New cancer treatments, for example, can cost up to MX$100,000 (US$5,882) per injection and patients need to apply them every four to six weeks for the rest of their lives. These new treatments have resulted in a 40% increase in the number of cases of cancer treatments costing over MX$1 million between 2022 and 2023. Cancer treatment accounts for a significant portion of medical expense claims, with 25% of all medical expense claims being attributed to cancer alone.

Cardiovascular diseases and orthopedic conditions also contribute substantially to these expenses due to the increasing costs of new technologies and treatments. When considering these factors, nearly 50% of the total expense claims are attributed to cancer, cardiovascular diseases, and orthopedic conditions. This pattern is likely replicated across the industry, with cancer treatments comprising an increasingly large share of medical expenses, potentially reaching 30% due to inflationary pressures resulting from new discoveries.

Due to these prices in the health sector, we bet on prevention as the solution to contain the most serious and expensive conditions. That is the reason we created the AXA Keralty alliance, which focuses on primary medical attention through our 13 clinics across the country.

Q: How does AXA support mental health initiatives and provide resources for mental well-being to its policyholders in Mexico?

A: We offer a 24/7 medical service, partially integrated into regular policing and partially through our AXA Keralty clinics. These clinics offer comprehensive psychological support, addressing prevalent issues such as mental health and psychological well-being. Psychological support is heavily sought after, along with physiotherapy for orthopedic concerns that do not require surgery. 

Companies are now prioritizing mental health in their group insurance policies. Many now require endorsements for mental health coverage, which not only protect against company liabilities but also provide counseling services to support employees. This endorsement, increasingly common in Mexico's corporate landscape, is often requested when obtaining quotes for employee health insurance and is typically included within the premium cost. 

Q: What other services are commonly used by AXA’s clients?

A: Pediatric and general medical services are commonly requested. Unfortunately, there has been a shift in healthcare seeking behavior in Mexico. Previously, individuals often had a family doctor, but now they tend to bypass general practitioners and directly consult specialists. The role of a comprehensive general practitioner who understands and manages various health issues has somewhat diminished. AXA Keralty clinics aims to reinstate the role of a general practitioner as the initial point of contact who can refer patients to appropriate specialists as needed. 

Q: What role does technology play in enhancing AXA's health insurance offerings in Mexico?

A: We aim to use technology to make our services incredibly easy. The My AXA app was designed to streamline insurance processes. We also implemented optical recognition technology to swiftly convert a doctor's handwriting into usable data, expediting processing times. Our claims department uses machine learning and AI to identify and address needs promptly. If additional information is required, it is swiftly communicated, ensuring efficient claim resolution. 

Technology can also benefit the healthcare delivery model. It is essential to recognize that relying solely on a payer model is not feasible. We believe in transitioning from mere payers to strategic partners. This approach, championed by AXA in recent years, underscores our commitment to holistic healthcare. It Is not just about settling bills; it is about genuinely supporting the patient’s health journey. 

Q: What are the primary strategies AXA implements to serve as a companion on the patient's health journey?

A: The journey starts with prevention, which is not universally embraced in Mexico. People tend to shy away from check-ups or yearly clinic visits, preferring to address health issues only when they are advanced problems. The technology integrated into our clinics facilitates this preventive approach. For example, we have devices like a special camera that quickly assesses ocular pressure, aiding in the early detection of conditions like hypertension. We also offer genetic testing to identify predispositions to various diseases, allowing for proactive interventions. 

The challenge lies in encouraging people to use these resources. Despite the technological advances and tools available, there is reluctance to undergo check-ups. By embracing preventive measures, individuals can take control of their health, avoiding the need for reactive interventions like surgery.

Q:What support do insurers require from the public sector to reach a broader population?

A: We advocate for a shift toward a preventive healthcare approach. A stronger emphasis on prevention within the healthcare ecosystem in Mexico. We propose a stronger foundation of preventive measures to alleviate the financial burden on both the private and public sectors. Our investment in clinics aligns with our commitment to preventive care.

Q: What are your short-term goals for Mexico?

A: We are focusing on comprehensive care, prioritizing prevention and linking major medical expenses to preventive measures. Our product for individuals, Flex Plus, and the prevention-linked product, Flex Plus Integral, provide access to clinics and preventive services. The group product, Comprehensive Care, aims to reduce premiums and focus more on well-being and prevention. In the short term, our goal is to expand this initiative to ensure sustainability in health insurance. Without preventive measures, premiums will become unaffordable, leading to a decrease in coverage.

AXA Mexico is one of the most important insurance companies in the country. With local presence since 2008 and the mission to better protect more Mexicans, it offers protection to people, SMEs, and corporate business through different lines of business: Motor, P&C, Health, and Life.