Company ‘s overview
Allianz Group is one of the universe ‘s leaders supplying insurance and fiscal services. Allianz SE, the keeping company is at the top of the international group with its caput office in Munich. Allianz was founded in Berlin, Germany in 1980 ( Allianz, 2010 ) .
With about 152,000 employees worldwide, the Allianz Group serves about 75 million clients in approximately 70 states. On the insurance side, Allianz is the market leader in the Germany market and has a strong international presence ( Allianz, 2010 ) .
Allianz has more than 100 old ages of eventful history. Though Germany ‘s licking in World War I restricted Allianz ‘s international concern, but Allianz easy ventured outside Germany to other European markets ( Allianz, 2010 ) .
In the epoch of National Socialism in station 1933 Nazi Germany, Allianz conformed to the norms of the epoch. After enduring some concern jobs during World War II, Allianz started to reconstruct station 1945. Get downing from the 1950 ‘s throughout 60 ‘s, 70 ‘s and 80 ‘s Allianz started to acquire international by distributing its activities to many states in Europe and Americas. Allianz began to venture the Asiatic markets from the 1990 ‘s ( Allianz, 2010 ) .
Allianz Group besides expanded its plus direction concern. Today, Allianz Group is one of the universe ‘s prima fiscal service suppliers ( Allianz, 2010 ) .
The mission of Allianz
The mission of Allianz is to accomplish sustainable growing of our competitory strength and values. In order to accomplish this mission, they implemented a series of steps which characterize as “ 3+one ” plan. They have an overall 3+1 plan:
Protecting and heightening the capital base.
Well beef uping the operating profitableness.
+One: Increase sustainable fight and value.
The organisation construction of Allianz
Board of Management
International Executive Committee
International Advisory Board and Joint Advisory Council
The organisation civilization of Allianz
Allianz Group civilization combines German feature and international genius. In Munich, a batch of linguistic communication will be utilizing by the people when they speaking to each other such as French, German, English, Italian, Chinese and etc. However Allianz values local civilizations and markets state of affairs does non order a one size all fit solution for the single location. That why Allianz has defined a scheme model to guiding criterions. So that Allianz Group in the worldwide can follow the cultural and concern demand to specific parts ( Allianz, 2010 )
The macro environment analysis
Plague analysis is concerned with the environmental influences on a concern. PEST is stand for Political, Economic, Social, and Technological factors of the external macro environment. Political factors include authorities policies associating to the industry, revenue enhancement policies, Torahs and ordinances, trade limitations and duties etc. The economic factors relate to alterations in the wider economic system such as economic growing, involvement rates, exchange rates and rising prices rate etc. societal factors frequently look at the cultural facets and include wellness consciousness, population growing rate, age distribution, alterations in gustatory sensations and purchasing forms etc.
The technological factors relate to the application of new innovations and thoughts such as R & A ; D activity, mechanization, engineering inducements and the rate of technological alteration. It is an of import tool to understanding hazards associated with market growing or diminution, and as such the place, possible and way for a concern or organisation ( Thompson, 2002 ) . Following are the different factors impacting the Allianz insurance in UK.
Some of these factors had a good impact to the travel, auto and place insurance in the UK. The authorities travellers ‘ consciousness run has brought awareness to the populace about the dangers of going uninsured foregrounding the expensive costs of medical interventions abroad. The travel industry has supported and benefited from this as it increased their gross revenues chances.
The lower limit auto insurance implemented by the authorities is 3rd party screen. This has a really good impact on the auto insurance industry as this guarantees a sale on every auto in the UK and because 76 % of grownup in the UK have a full drive licence, all of them are possible clients ( Birtles, 2002 ) .
“ Legal & A ; General informations revealed that most critical unwellness screen claims are made by people under 40. ” ( Speedy, 2004 ) This has been good intelligence for age dedicated place and wellness attention insurance companies as less screen claims means less liabilities. However, harmonizing to the Bank of England, the lifting revenue enhancement is decelerating down the consumer disbursement. This has severely affected the whole of the insurance industry as people had less money to pass on higher premiums or bundles.
In today ‘s universe people are more work-orientated, so gaining more once more interpreting to larger disposable incomes leting people to populate comfortably & A ; take advantage of more expensive strategies in insurance such as taking fully-comprehensive screen instead than third-party ( Speedy, 2004 ) .
Another economical fact is that we are presently at the ‘boom ‘ phase of economic rhythm and so people are better off. This means that as stated above people are able to populate more comfortably and on a general degree are better able to afford things like nutrient, shelter, vesture and wellness attention. This translates to fewer unwellnesss which mean that insurance companies have less payout to do as less people fail ailment ( Speedy, 2004 ) .
Another of import factor to detect about the general populace in a roar stage of the economic rhythm is that people are more likely to pay for merchandises in the service industry. So things that they may hold refrained from due to a deficiency of money like wellness insurance will be more welcome during a period of roar so increasing gross for insurance companies ( Birtles, 2002 ) .
In today ‘s society at that place has been an addition in immature drivers. They choose to see on parent ‘s autos along with salvaging the money to purchase their ain autos. Young drivers aged between 17 and 25 besides have a higher opportunity of being in an accident so they are more dearly-won for an insurance company to cover so insurers charge more. For this ground the addition in immature drivers translates into larges grosss for insurance companies due to the larger premiums. ( Birtles, 2002 )
Another alteration in today ‘s society is the addition in the ‘racing civilization ‘ with big accent placed on driving faster and better looking autos. Modified autos are a inexpensive option to purchasing a athleticss auto besides increasing insurance costs ( Speedy, 2004 ) .
In comparing with 30 old ages ago the mean individual earns much more today interpreting to larger disposable incomes. This has taking to more people being able to afford 2nd autos and so being insured on them giving more concern to insurance companies ( Speedy, 2004 ) .
The success of cyberspace and an integrated information and communications engineering system has allowed any concern to increase gross revenues and cut down dealing costs. The cyberspace has wholly changed the bringing service procedure. Today, cyberspace is used to even sell insurance policies. Internet turn outing to be one of the widely used distribution webs for selling insurance policies. Besides cyberspace is used for directing premium notices to policy holders through electronic mails ( Shinde, et al. , 2008 )
Besides that, cyberspace has a premium reckoner which accurately displays the sum of premium month wise and the staying balance. One merely has to come in the age, name of the insurance policy, the amount assured and whether there is an accident screen or non. By identifying in this information, the full premium sums are shown within no clip. This has helped the client in a manner so that they do n’t hold to go all the manner to the subdivision to determine the sum of premium to be paid ( Shinde, et al. , 2008 )
The international consideration
Allianz operate about in every continent. The parts are Eastern Europe, Central & A ; Eastern Europe, Asia Pacific, Americas and Middle East & A ; Africa. Allianz is profoundly rooted in their domestic market which is Western, Northern & A ; Southern Europe. Western Europe is the place of Allianz. ( Allianz, 2010 )
When Allianz wants making an international concern, Allianz will see the human resource, fiscal and legal demand into peculiar state. Allianz start a new venture in China, fiscal will incurred in that China will take down than holding a new venture in Europe. Furthermore Allianz can acquire a big human resource in China. This is because the population in China is really big. Allianz besides can salvage cost. The pay wage to the labour is lower and produced the production in a lower cost ( Allianz, 2010 ) .
When a company intend to traveling international, they will see the macroeconomic that will impact in their concern. Before enter to a new state or new venture. They will make a research about the external environment of that state or part foremost and so merely make up one’s mind whether to get down the new venture into that state or non. While Allianz besides does the something. The macro environment that consider to the company are political or legal status, economic status, societal issue environment and engineering. Those are important to measure a state before making an international concern ( Allianz, 2010 ) .
There are several methods of traveling international when a company intends to travel international. The company can travel international based on export based, non-equity based and equity based. For Allianz which a company merely supply services, it use equity based method to traveling international which include joint ventures and foreign direct investing ( FDI ) . The first company or office that Allianz venture in is in London with unfastened a subordinate company ( Allianz, 2010 ) .
Allianz officially ventured into Malaysia in 2001when it became the commanding stockholder of Allianz General Insurance Malaysia Berhad ( AGIM ) . In 2007, the general insurance concern of AGIM was transferred to its entirely owned subordinate, AGIC. Following the completion of the transportation of general insurance concern, AGIM changed its name to AMB and became an investing keeping company ( Allianz, 2010 ) .
There are several issues that faced Allianz in Malaysia. One of the issues that face in Allianz presently is the pull offing clime alteration hazard. Pull offing clime alteration hazard is one of the biggest challenges the fiscal services industry is confronting today with several impact on the insurance industry. In the past 30 old ages, claims payments to the victims of great natural calamities have increased 15 crease to approx. 30 billion Euros ( about RM120 billion ) . Allianz settles 40 % of industrial insurance claims are due to natural calamities ( Allianz, 2010 )
To pull off climate alteration hazards, Loeffler ( 2010 ) acknowledge climate alteration as a affair of great strategic effect for Allianz. Allianz need to measure together with their clients on how to extenuate the hazards. At the same clip the challenges for Allianz is to accommodate to the impact of clime alteration and to safeguard insurability of hazard in future. In 2007, Allianz established Allianz Climate Solutions as a subordinate with the expressed purpose to develop new merchandises and place investing tendencies related to climate alteration.
The insurance concern demands to move as an early warning system and aid concern and society understand the new hazards. There are several ways to fix for the effects of clime alteration. Supplying hazard coverage for emerging engineerings for illustration dramas an of import function in their hereafter development. Procuring the insurability of hazards is indispensable for economic systems to be able to run ( Loeffler, 2010 )