Allianz: despite challenges, a renewed focus on Canada

Speaking at RIMS Canada, Allianz Global Corporate & Specialty experts discussed the top risks affecting insurance professionals, as well as its plans for the domestic market

Risk Management News

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Executive leaders with Allianz Global Corporate & Specialty (AGCS) held a “Risk Dialogue” at RIMS Canada in Québec City, and despite some growing obstacles facing the North American market, the specialty insurer hopes to double its presence in Canada by 2020.
 
“I think if we do a better job of selling Allianz and doing what we can really well, then there’s a good chance to thrive, even in a competitive environment,” said Ulrich Kadow, Chief Agent Canada, AGCS.
 
The company, currently operating with $250-260 million in net written premiums, boasted a 33.5% growth rate in 2014. It hopes to hit the $500 million mark within five years.
 
It plans to do this through improving the customer experience, investing in the emerging product landscape and continuing to focus on target industries. Company leaders did, however, acknowledge obstacles to Canadian and global growth, including:
  • New challenges in attracting talent
  • Climate change as it relates to population density. “The thing we neglect over time is that the accumulation of exposures has increased. In Florida, there’s not more wind, but more houses,” said Global CEO Chris Fischer Hirs. He also points to the expansion of many U.S and Canadian clients into China a reflection of this trend.
  • Overcapacity and oversupply of capital that may be limiting opportunities
  • The escalation of political violence abroad. “We’re still handling claims in the Ukraine,” Fischer Hirs noted. 
The executives also shared insights about the industry at large, including its outlook for M&A activity.
 
“Consolidation among the distribution partners of insurance companies will continue,” said Fischer Hirs. “As far as determining the right price, I’ll leave it to those people who are deciding to consolidate.”
 
While Kadow admits that new entrants into Canada has led to increased capacity and a more competitive environment, he believes ACGS can stand out by relying on practices that allow companies to be successful even in an unfavorable business climate.
 
“Our products can be copied, our peers can follow us to locations that we’re in, but what they can’t copy is the client experience we give you,” he said.

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