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Allianz Annual Report 2012

Magazine for the Annual Report 2012 31 Looking back on the risk management challenges he has faced at Allianz, Wilson says, “Since I joined, there’s been one external crisis after another – the banking crisis of 2008, the sovereign debt crisis of 2011 - 12 – each accompanied by highly volatile financial markets, slower economic growth and lower interest rates. Thanks to its disci- plined risk management and culture, Allianz has remained one of the soundest financial service providers in the world and has performed solidly in its business operations during these periods of turbulence.” Wilson’s second challenge was to set the course for risk management to take in the future, based on two key objectives. First, he introduced a stable, efficient and controlled risk reporting system in order to “get the numbers” and meet the future Solvency II requirements. Secondly, r­ecognizing that numbers are not enough, he plans for the company to continue moving from risk measurement to even better risk manage- ment. “But that works only because risk management is understood as a culture that begins with business operations. After all, there’s no amount of risk controlling or risk reporting that can compensate for an inadequately underwritten portfolio or a poorly conceived life insurance product,” he says. Forward-looking, prudent, responsible risk management ensures that when the time comes, Allianz can fulfill the promises it makes its clients. And this is important, believes Wilson. “One of the biggest ­contributions Allianz can make to society and as a partner in our local communities is through our products and services: our life insurance, savings and investment products help families protect themselves against many of life’s uncertainties,” he says. “And our property in­surance helps protect companies against disruptions and losses. Allianz does this while at the same time offering attractive returns for its shareholders and creating a great work environment for its staff. This is a win-win combination.” “ Thanks to its disciplined risk ­management and culture, Allianz has remained one of the soundest financial service ­providers in the world” TOM WILSON, CHIEF RISK OFFICER at ALLIANZ SE, Munich, Germany The Allianz “Risk Barometer” survey was conducted among risk consultants, underwriters, senior manag- ers and claims experts in the corporate insurance ­segment of both Allianz Global Corporate & Specialty and local Allianz entities. Figures represent the ­number of responses as a percentage of all survey ­responses (843). Sources Allianz Global Corporate & Specialty business interruption, supply chain risk natural catastrophes (e.g. storm, earthquakes) fire, explosion changes in legislation and regulation intensified competition quality deficiencies, serial defects market fluctuations market stagnation or decline eurozone breakdown loss of reputation of brand value 45.7 % 43.9 % 30.6 % 17.1 % 16.6 % 13.4 % 12.6 % 12.3 % 12.1 % 10.4 % Top 10 global business risks for 2013 Internal solvency ratio 2012 : Internal solvency ratio 199 %2011: 191 %