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Allianz Annual Report 2012

Magazine for the Annual Report 2012 17 Last year’s earthquake in Italy left homes in ruins. Streets had to be closed off. Reconstruction was time-consuming and is still not complete. ­policyholders and insurers. The long-term damage an insured party can suffer from being unable to meet contractual obligations to clients may be even worse than the destruction caused by an earthquake, hurricane or other catastrophe. “It’s not unusual that a business has to declare bankruptcy after a major loss or gets bought out by a competi- tor because it  was out of the market for too long,” explains Shell, who has been adjusting industrial losses for Allianz for 20 years, and has headed Property Insurance claims adjustment at AGCS since 2006. If a policyholder can no longer meet delivery obligations, he says, compet- itors often take over the unfulfilled orders. Then they try to keep the client for themselves with long-term supply agreements. Titan Italia was facing such a prospect. To keep it from becoming a reality, Allianz covers additional costs – for example if deliveries have to be made from a different production site. Staff overtime is also covered, so the insured party can meet contractual delivery obligations to its own clients and thus reduce the cost of lost operations. The assessment of a claim depends on many different factors. For example, it makes a difference whether the damaged or destroyed property was an office building or a production facility, where struc- tural issues are less of a concern than restoring the machinery. “Every claim is essentially a new project. Each time we have to find the best way to get the client quickly back into production,” Shell explains. “You have to get a picture of the circumstances, assess where the key problems are and work out a fast way to help the client.” Titan Italia got its first interim payments from Allianz very quickly. Maria Cecilia la Manna, Vice President and Managing Director at Titan Italia, had insured the production site with Allianz, with coverage not just for the buildings and production equipment, but for the financial consequences of a business interruption. The earthquake caused ­serious property damage. Part of the plant collapsed.