AXA, the global insurance company, Alibaba, and its Ant Financial Services unit are teaming up to distribute AXA’s insurance products and services via Alibaba’s online platforms, reports Pymnts.
The two companies will also work together to develop additional products and services that mutually support each other’s businesses.
In the first phase of the alliance, AXA will create insurance products for AliExpress, a retail marketplace, including extended warranties for repairs and online payment protection.
On Alibaba’s wholesale marketplaces, including Alibaba.com and 1688.com, AXA will offer small and medium-sized businesses that are trading on the two platforms insurance products via Ant Financial Services.
AXA will provide travel insurance for Chinese travelers going outside of the country – according to the insurance company, services and products will be tailored to meet the needs of the local consumer.
“This proposed collaboration with Alibaba could provide us with a unique global and direct distribution channel, and we are looking forward to serving Alibaba’s customers and to developing bespoke and innovative insurance products and services for them,” says Thomas Buberl, deputy CEO of AXA. It also aligns with AXA’s plans to accelerate development in China.
The benefits of the deal are obvious for AXA, getting access to a slew of potentially new customers. For Alibaba, it opens the opportunity to build trust with consumers and hopefully lure those who may be wary they will end up buying fake goods. Alibaba is pushing anti-counterfeit products initiatives in the light of the company’s backlash regarding fake goods on its site.
As cross-border ecommerce grows rapidly, it is critical that we evolve our services and offerings to the businesses and consumers that conduct trade on our platforms. – Michael Evans, President of Alibaba Group.
A version of this appeared in Pymnts on August 1. Read the full version here.