On episode 44 of the Going Long podcast, Sarah Williamson sits down with Thomas Buberl, CEO of AXA. The discussion brings to light several key themes shaping the future of insurance and institutional investment: the delicate balance between short-term pressures and long-term planning, the growing impact of climate change on risk assessment, the shift from claims payment and response to prevention, the importance of aligned shareholders in supporting sustainable strategies, and the increasing interconnectedness of global risks. As financial markets grapple with these challenges, AXA’s approach offers insights for institutions seeking to build resilience while creating lasting value.

Topics include:

• [00:01:35] Balancing short-term pressures with the mindset of building a company that people will rely on for years
• [00:04:16] Geopolitical tensions and Europe’s competitiveness
• [00:09:52] Mispricing and risk prevention
• [00:18:21] Vision 2030 and the future of insurance
• [00:25:21] The importance of having long-term shareholders

Climate Risk and Market Mispricing

 

The conversation begins with the challenges in pricing future risks, such as physical climate threats, insurance costs, and carbon pricing. While some investors proactively incorporate these factors, others assume the market will self-correct over time. Buberl warns against this passive approach, emphasizing that secondary perils—such as wildfires, floods, and droughts—are increasing in frequency and appearing in unexpected locations. He stresses the importance of integrating climate risk into investment strategies before markets suddenly react, leading to a scenario where hidden risks become apparent too late.

 

[00:10:53] “Mispricing is clearly an issue at the moment, but I think there’s also a misconception of what is climate risk and how can it be solved. […] If you have a problem, you need to see how you can solve it. And what you can see on natural catastrophes is that you can manage these claims better and bring this risk back in a zone where it’s properly priced if you use more prevention.”

 

Vision 2030: The Future of Insurance

 

Looking ahead, Buberl describes a fundamental shift in AXA’s business model. As risks increase and affordability declines, traditional insurance—focused solely on paying claims—will become unsustainable. Instead, AXA aims to make claim payments the exception by prioritizing risk prevention. This transformation will rely heavily on technology, such as satellite data and sensors, to help clients mitigate risks before they occur. The goal is for insurers to act more like proactive partners, guiding customers toward safer lives and businesses rather than merely covering losses.

 

[00:22:34] “A big fundamental question is what is our role in this area? And it goes back to prevention. We need to shift our business model from when I started (100 percent making claims) to in 2030 or beyond making the claims payment the exception, while helping people to live a better life.”

 

Developing the Next Generation of Leaders

 

Buberl shares insights from his leadership journey, highlighting the importance of learning from experienced colleagues, taking on demanding roles, and fostering a culture of continuous talent development. At AXA, leadership growth happens daily through direct feedback, challenging assignments, and initiatives like the company’s Vision 2030 strategy, where young leaders are encouraged to propose new ideas without rigid guidelines. This proactive talent management approach has helped AXA retain top employees and cultivate a forward-thinking leadership pipeline.

 

[00:18:50] “Every meeting I have I to try to give feedback, instill a long-term vision, and try to show what I have learned to other people.”

 

Investor Alignment and Long-Term Thinking

 

Buberl discusses the importance of aligning with the right investors—those who value long-term growth over short-term gains. While AXA balances both short- and long-term objectives, it prioritizes sustainable progression, particularly in areas like climate transition. Engaging with investors provides valuable perspectives that help shape AXA’s evolving strategy. Long-term thinking remains as essential as ever, as well as climate risk preparedness and the role of investors in shaping a sustainable future. Buberl’s insights underscore the importance of proactive risk management, leadership development, and innovation in transforming the insurance industry.

 

[00:26:28] “You need to find the right investors. I would say the short-term-oriented hedge fund who looks for the quick buck is probably not the right shareholder for our model. […] We have to cater at the end of the day to the investors that trust us, listen to them, what they want, and also adjust our own strategy and long-term vision.”

 

About Thomas Buberl

Thomas Buberl has been Chief Executive Officer and Director of AXA, one of the world’s largest insurance companies, since 2016. He started his career at the Boston Consulting Group and then worked for the Winterthur Group and Zurich Insurance Group, where he was CEO for Switzerland. In 2012, he joined AXA as CEO of AXA Germany and prior to his current role, he was the CEO of the Global Business Line for the Health Business.

About AXA

AXA is one of the world’s largest insurance and financial services companies. Founded in France, it operates globally, providing insurance services across multiple categories, asset management through AXA Investment Managers, and comprehensive financial protection services.