More than 80 million customers were served by Allianz companies worldwide by end of 2007. But the company reaches out for more: Over the medium term, Allianz wants to reach 100 million customers worldwide. Customer growth is particularly high in highly populated growth markets. In Asia Pacific, Allianz served 18.5 million customers by end of 2007, a figure that has increased significantly to 21 million by end of June 2008. More than one fourth of Allianz customers today live in Asia.
More than 21 million Allianz customers in Asia Pacific
Key to this large customer base is the strengthening of sales and distribution channels. With a strong focus on tied agency, multi-distribution remains Allianz' strategic priority in Asia. As Bruce Bowers, Regional CEO of Allianz Asia Pacific puts it, "We are determined to go on expanding consistently and continuously in all of our chosen markets, through strengthening our retail presence and following a multi-distribution strategy."
While India is still the largest sales force in Asia, other entities have significantly expanded their agency channels and are gaining momentum.
Bruce Bowers: "We are determined to go on expanding consistently and continuously"
Agency growth all over Asia
The rapid growth of Allianz agency force was mainly driven by life entities in Thailand, Indonesia and China. In Thailand, the company is appointing up to 3,000 new agents per month in 2008, lifting the number above 21,000 agents by end of August. In Indonesia, Allianz' agency strength is growing steadily, reaching 10,000 agents by end of this year.
Allianz China intends to boost its sales force from 10,000 in January to 15,000 agents by end of the year. The company is producing good results by implementing a new Agency Model for sustainable and rapid growth. Unlike the traditional model, the new model has a more streamlined and effective structure, enabling efficient distribution of labour in sales, recruitment and management. The experience will be shared regionally to explore the potential for adaptation elsewhere in Asia.
Training fosters growth and high quality service: Agency workshop in Shanghai
As another example for Allianz' multi-distribution strategy, Allianz in Taiwan will build up the agency channel to more than 1800 agents by end of the year. It complements the existing bank cooperations that have helped grow Allianz Taiwan Life very successfully over the past years. In 2007 Allianz Taiwan Life ranked number one by new business among international life insurers in Taiwan and the sixth largest life insurer within Allianz.
To secure that growth goes along with high quality service, Allianz initiated regional training programs to highlight best standards of ethics and professionalism in management and sales. "We offer highly effective training programs to help our agents succeed," Chia-Yan Chang, Chief Sales and Marketing Officer Asia said. "Size does matter, it is an important key for Allianz to achieve a profitable, sustainable and rapid growth in Asia," he added.
Launch of second Bancassurance Academy
Allianz is not only strengthening its agency but also its sales cooperations with banks. The concept of the Bancassurance Academy was launched in 2007 to provide high quality training for staff of bank partners and Allianz. After China, the second Bancassurance Academy has been launched recently in Indonesia as part of a corporate university. The launch of another academy is planned for North Asia.
Shanghai's Bancassurance Academy currently offers 13 bancassurance training courses, certified by the Shanghai University of Finance and Economics. By September 2008, 170 trainees have passed their final exams to become a certified bancassurance graduate. The trainings enable sales representatives to offer much higher levels of advice on insurance products and customer service over bank counters.
Allianz with robust first half in 2008
The focus of strengthening sales channels pays off. Despite difficult market conditions, Allianz has seen a robust development of its business in Asia Pacific in the first half of 2008. Total premium income from all Allianz insurance operations in the region were up to 4.5 billion euros. This is an increase of 8 percent from last year's 4.1 billion euros. Operating profit was 200 million euros. Bruce Bowers said, "Our figures show that we are on the right track. We have invested heavily in our sales channels, and we have delivered on growth. Within the first half of 2008, we increased our customer base substantially to 21 million and are well set to grow further in 2008."
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