Thomas Buberl, CEO of AXA since 2016, has steered one of the world’s largest property and casualty insurers toward a more socially conscious business model. Under his leadership, the global insurance giant has taken significant steps to address climate change, while developing innovative solutions for underserved markets.
Buberl’s strategy represents a notable shift for the insurance industry, traditionally focused on risk assessment rather than risk prevention or social impact. His decision to withdraw from insuring fossil fuel companies marks a clear stance on climate issues that has implications across the financial sector.
Climate Action and Fossil Fuel Divestment
Since taking the helm at AXA, Buberl has made the bold decision to stop insuring the fossil fuel industry. This move aligns with growing pressure on financial institutions to consider their role in enabling or mitigating climate change. Rather than simply avoiding climate risks, AXA has adopted a more proactive approach by working directly with clients to reduce their environmental impact and associated risks.
The company’s leadership recognizes that climate change presents not just environmental concerns but material business risks. AXA’s portfolio, heavily weighted toward property and casualty insurance, is particularly vulnerable to increasing natural disasters and extreme weather events linked to climate change.
Addressing Global Challenges
Beyond climate concerns, AXA’s leadership team has identified several major risk categories that shape their strategic thinking:
- Climate change and environmental degradation
- Geopolitical instability and conflict
- Public health crises
- Socioeconomic tensions and inequality
These interconnected challenges have informed Buberl’s vision of insurance as more than just a financial safety net, but as a tool for social good and risk prevention. This perspective has led to significant innovations in how AXA approaches its business model and product offerings.
Innovation for Underserved Markets
One of the most significant initiatives under Buberl’s leadership is the Emerging Customers group, launched in 2016. This division focuses on developing insurance solutions for mass-market and low-income customers in developing nations who fall into a protection gap—earning too much to qualify for social safety nets but not enough to afford traditional insurance policies.
This program addresses a critical need in developing economies where unexpected events like illness, accidents, or natural disasters can push families into poverty. By creating affordable insurance options for this segment, AXA aims to increase financial resilience among vulnerable populations.
“We recognized there was a significant portion of the global population without access to financial protection,” Buberl has noted regarding the initiative. “Our Emerging Customers group creates solutions specifically designed for their needs and financial capabilities.”
Partnering for Risk Reduction
AXA has also transformed its relationship with corporate clients, moving beyond the traditional insurer role to become a partner in risk reduction. The company now works with businesses to analyze their environmental impact and develop strategies to reduce both their carbon footprint and exposure to climate-related risks.
This collaborative approach represents a fundamental shift in how insurance companies operate. Rather than simply pricing risk and paying claims, AXA actively helps clients prevent losses—a strategy that benefits both the insurer and the insured while contributing to broader climate goals.
The company’s focus on prevention extends to other areas as well, including public health initiatives and programs to address socioeconomic vulnerabilities in various markets.
As global challenges continue to evolve, AXA’s approach under Buberl demonstrates how financial institutions can adapt their business models to address social and environmental concerns while maintaining profitability. The company’s strategies offer a potential roadmap for other insurers facing similar pressures to balance shareholder interests with broader societal responsibilities.
