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Allianz Annual Report 2012

Allianz Group28 What do volatile financial markets, technological advances, the threat of terrorist attacks, an aging population and climate change have in com- mon with Allianz? A lot more than one might think at first glance. As the world’s largest insurance group and one of the largest financial service providers, Allianz has to look to the future and correctly assess and evaluate risks like these in order to create value for our customers and shareholders. As Chief Risk Officer for the last five years, Tom Wilson has been responsible for making sure the risks Allianz takes are well structured, appropriately priced and managed within acceptable limits. More importantly, he has to ensure that Allianz recognizes not only the risks but focuses also on the opportunities. Risk management is at the core of Allianz’s business. “We can’t create lasting value for our clients, shareholders and employees without tak- ing risks. As such, one of our most important tasks as an insurance company is to take the ‘right’ risks in the ‘right’ amounts and at a fair price,” Wilson explains. Trends like global warming and demographic change may involve higher risks, but they also offer opportunities for an insurance company if it manages risks in the right way. “Offering property insurance is good for us and good for our clients,” explains Wilson. “The same is true for savings and retirement products. But nobody can tell with certainty what long-term effects climate change will have on the frequency or severity of natural disasters or how long people will live on average given medical and social advances. We have to include that uncertainty in our underwriting, pricing and limit decisions and, although it may seem counter-intuitive, knowing what we don’t know helps.”  184 Risk Report “ One of the biggest contributions Allianz can make to society and as a partner in our local communities is through our products and ser- vices: our life insurance, savings and investment products help families protect themselves against many of life’s uncertainties” TOM WILSON, CHIEF RISK OFFICER at ALLIANZ SE, Munich, Germany