“I wish to broaden the quantity of branches now we have the place we’re connecting with clients,” Allianz UK CEO Colm Holmes advised Insurance coverage Age.
“We’re jurisdictions the place we really feel we have to have a stronger native presence.”
He revealed that additional bulletins can be made within the subsequent few weeks.
“You’ll see us transfer rather more to hubs for again workplace, however very a lot native for department underwriting within the business house,” he mentioned. “As a result of the brokers are telling us that’s what they need.
We react to our individuals and to our clients. And that can by no means change so long as I’m with Allianz. We deal with clients and brokers, not on navel-gazing.
“I’ve at all times been of the view that it’s our job to be the place the brokers are and the place they want us to be.”
Map
Holmes, pictured, detailed whereas the sq. footage of the enterprise has been lowered with workplaces being consolidated the variety of ‘pins in a map’ the place brokers can work together with underwriters will develop.
The shift to merge workplace house in places has been pushed by duplication after the offers for L&G’s normal insurance coverage enterprise and LV, and adjustments in work patterns submit the pandemic that means employees aren’t within the workplace 5 days every week, he mentioned.
He additionally argued the repurposing of the buildings means higher working. He mentioned: “The house now’s extra appropriate to what individuals come to the workplace to really do, which isn’t to take a seat at a desk, nevertheless it’s rather more collaboration house, rather more coaching, rather more deal with how they will create technique.”
Smaller brokers
In February Holmes had promised Allianz would push ahead further with smaller brokers this yr rising within the SME house.
In his view it has been a profitable initiative.
“We’ve been concentrating on the smaller dealer neighborhood and the way we will help them, and we’re investing extremely closely in our digital functionality in that house,” he mentioned.
A precedence has been broadening the client options on provide. He mentioned: “It’s about extra brokers that we’re doing enterprise with. It’s about constructing stronger ties in the neighborhood.”
He added: “It’s best to count on to see us develop within the areas, as a result of I nonetheless strongly imagine in that native relationship being actually necessary in that SME house.
“You’ll nonetheless see us investing in that house, I’m not a fan of the central hub for underwriting SME. I believe you’ve acquired to be near the purchasers and nearer to the brokers.”
Outcomes
The replace got here as Allianz UK boosted gross written premiums by 5.5% within the first half of the yr to £2.21bn with working revenue leaping by £62m to £174.8m.
The mixed working ratio improved to 94.6% from 96.6% in the identical interval of 2023.
“The advance is predominantly throughout private traces,” Holmes mentioned.
“Private traces was rather more impacted by the inflationary issues, the frequency rebound off the again of Covid in 2022 and 2023.
“The huge bulk of the development in COR and profitability is pushed by our private traces enterprise getting again to the place it ought to. There may be nonetheless extra to come back nevertheless it’s had a implausible 12 months on the again of a really disappointing two years for the business and for us as nicely.”
Insurance policies
Private traces GWP was up 3.3% to £1.07bn. Holmes acknowledged there had been a discount in insurance policies however pressured retention had been robust whereas new enterprise conversion got here down.
“We haven’t been chasing quantity,” he mentioned, mentioning this included home-based business. Six months in the past he assessed that there was nonetheless “street to run” for the sector on price hardening. Current figures from Consumer Intelligence for the yr to April put the year-on-year enhance in charges at 41.6%.
“We expect, as we get into the second half of 24, significantly into 25, that you’ll begin seeing development in insurance policies, however we’ll defend the margin by way of that, particularly the place we see volatility going down within the numbers,” Holmes mentioned. “We’re not an organization that can chase premium for the sake of chasing it.”
Industrial development
Allianz UK’s half-year outcomes confirmed business traces GWP ticked up 5.9% to £770.9m.
Holmes defined there have been differing performances by line of enterprise.
In business motor volumes got here down. “I don’t assume that market is as arduous because it must be and so we’re nonetheless making use of price in that phase,” he mentioned underlining it was “extremely disciplined” on renewals and new enterprise.
“We’re persevering with to develop strongly within the focused segments for us, which had been property and legal responsibility.”
Riots
As reported by sister title Insurance Post, insurers are more likely to need to pay out a minimum of £20m for the injury attributable to the far-right anarchy throughout the UK in current days.
Holmes calculated that whereas Allianz had seen a handful of notifications on claims it was not at the moment a cloth quantity.
“The important thing factor for us is defending our individuals initially,” he mentioned.
“We’re working very carefully with every workplace when it comes to protecting individuals protected, and that’s our precedence.”
Technique
Wanting forward on the subsequent six months he summed up the enterprise technique for Allianz wouldn’t change. It would mix investing in expertise, information and analytics with spending on ‘entrance of home’ and new merchandise to be simple for brokers to work with.
“Count on to see us proceed to develop into focused areas of property, legal responsibility and casualty,” he mentioned.
However reiterated that with early indicators of softening in business property charges it can “stroll again” if the margins aren’t there. He mentioned: “You’ll proceed to see us being extremely disciplined round what we’re doing.”
Model
The insurer introduced this week that Twickenham will become Allianz Stadium from September as a part of a cope with the Rugby Soccer Union that sees the supplier make an unspecified “long-term funding” within the sport.
Persevering with to take a position “closely within the model of Allianz within the UK” can be a part of the equation, Holmes mentioned.
He mentioned: “We react to our individuals and to our clients. And that can by no means change so long as I’m with Allianz.
“We deal with clients and brokers, not on navel-gazing at ourselves.”
For all the newest business information direct to your inbox, sign up for our daily newsletter.
