Michael Diekmann: Transparency and sustainability

Allianz will be publishing its Sustainability Report on March 14. Before the report goes into print, Michael Diekmann, CEO of Allianz SE, explains how important sustainability is for Allianz in times dominated by a difficult market environment.

 

The Dow Jones Sustainability Index currently ranks Allianz as the most sustainable insurer in the world, while Transparency International has named the company as the most transparent. Has the financial crisis been a help or a hindrance in this development?

 

The financial sector is - understandably - caught up in a crossfire of criticism. This attention, however, also presents opportunities. After all, the market has developed a greater awareness of possible misconduct, in addition to true customer focus, sustainable product solutions, good corporate governance and, ultimately business success. For any company seeking to differentiate itself from the competition, there is no better time than the present.

 

In 2013, we surveyed almost half a million customers worldwide. Their trust in, and loyalty to, Allianz are being enhanced by transparency, needs-driven advice and providing real solutions to their problems. In line with this trend, our global employee survey revealed an increasing focus on customer satisfaction and integrity - two values that helped us manage the effects of the financial crisis for our customers well.

 

Where do you think the biggest challenges lie for your customers in the aftermath of the crisis?

 

There are four main issues that we are focusing on: climate, demographics, access to financial products and data security.

 

As an investor, our capacity when it comes to climate protection can extend to well beyond our 42 wind farms and 7 solar farms if the regulatory framework allows. We are also aiming to establish ourselves as a leading "green insurer". Allianz currently offers more than 150 green solutions worldwide.

 

In Germany, the ratio of over-65s to people in the 20-64 age group will have doubled by 2060. In 2013, we introduced new life insurance models that offer good returns even in a low-interest rate environment. And, provided the political will is there, as a long-term investor we can ramp up our involvement in major energy transformation and infrastructure projects, using the stable returns generated from these investments to strengthen retirement provision. Solutions like these, combining climate protection and demographic concerns, would see society reap twice the benefits.

 

When it comes to access to financial products, we are a leading microinsurer with over 24 million customers in eleven countries. As a reinsurer we also protect more than 100 million small-holder farmers in India and China. What is more, satellite-based rice field analysis will allow us to offer crop insurance to rice farmers across the board in the future.

 

While digitalization promises to make things more convenient and transparent for our customers, it also poses a challenge as far as the security of their data is concerned. Allianz is investing half a billion euros to consolidate the data on its customers and employees in data centers; two each in Europe, the US and Asia.

 

"Food speculation", investments in companies that manufacture weapons - Allianz is now also coming under fire from non-governmental organizations. How sustainable is your response to this criticism?

 

Breaches of environmental and social standards often go hand-in-hand with risks that cost companies higher premiums for their insurance or limit the returns associated with an investment. We want to work with our customers to identify and reduce these risks to our mutual benefit. Our Sustainable Development Report now, for first time, looks at 13 areas in which we are assessing the environmental risks associated with various technologies.

Michael Diekmann, CEO of Allianz SE: "When it comes to access to financial products, we are a leading microinsurer with over 24 million customers in eleven countries."
Michael Diekmann, CEO of Allianz SE: "When it comes to access to financial products, we are a leading microinsurer with over 24 million customers in eleven countries."

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Nicolai Tewes
Allianz SE
Phone +49.89.3800-4511
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