"SWOT ANALYSIS - ALLIANZ"

1. ALLIANZ SWOT ANALYSIS
Submitted to-
Prof Dr. Uma warrier
By, Chaitali Deb
13MBA63020
Sec E last year
2013- 2015
CMS Business School
Jain University

2. HISTORY
 Allianz SE previously known as Allianz AG , is a
holding company.
 Leading insurers and financial services providers
worldwide.
 The service portfolio of the company comprises
property and casualty insurance ,life and health
insurance ,banking and asset management.
 Headquartered in Munich, Germany and employs
120000 people worldwide.

3. SWOT
 SWOT is an acronym for the internal strengths and
Weaknesses of a firm and the environmental
Opportunities and Threats facing that firm.
 SWOT analysis done for formulation and
implementation of the strategies emerged from the
matrix .

4. Need of SWOT Analysis
 Widely used technique through which managers
create a quick overview of a company’s strategic
situation.
 Technique is based on the assumption that an effective
strategy derives from a sound “fit” between a firm’s
internal resources ( strength and weaknesses) and its
external situation ( opportunities and threats).
 A good fit maximizes a firm’s strengths( human
resource, financials) and opportunities ( expansion to
different countries) and minimizes its weaknesses(
liabilities) and threats ( competitors).

5. Allianz SWOT Analysis
 Allianz SWOT analysis done on the basis of two
variables
 Location of factors and Type of factor
 Types of factor can be broken down into favorable and
unfavorable

6. Favorable Strengths
 Leading provider of insurance services
 Strong asset management
 Excellent ratings
 High solvency ratio
 Risk management

7. Unfavorable – Weaknesses
 Weakening German motor insurance operations
 Sub prime exposure
 Sub – optimal combined ratio in some non- life
insurance markets

8. External - Opportunities
 Possible takeover of Deutsche Postbank AG
 Blooming Russian insurance sector
 Attractive Asian pension market
 Global demand for retirement products

9. External - Threats
 Consolidation in the industry
 Stagnation in the motor market and new regulation in
Italy
 Mounting insurance frauds
 Occurrence of natural disasters
 High attrition rate

10. Organizations Business strategy
 Allianz analyzed its strengths and opportunities and aroused to a
strategy
 Business strategy – Expansion
 Expanded in the Asian market
 Bajaj Allianz life Insurance Company Limited (BALIC) is a joint
venture between Allianz SE of Germany and India based Bajaj
Finserv Limited (recently demerged from Bajaj Auto Limited).
BALIC came into being on 12th March 2001. It is characterized by
global presence with a local focus and is driven by customer
orientation to establish high earning potential and financial
strength. The company received IRDA (Insurance Regulatory &
Development Authority) Certificate of Registration (R3) No. 116
on 3rd August 2001 to conduct Life Insurance Business in India.

11. Scope - Expansion in India
HEALTH INSURANCE
Health insurance expenditure in India is roughly 6% of
GDP, much higher than most other countries with the
same level of economics development. Of that, 4.7% is
private and the rest is public. What is often more striking is
that 4.5% are out of pocket expenditure (Berman, 1996).
There has been an almost total failure of the public health
care system in India. This creates an opportunity for the
new insurance companies. Thus, private insurance
companies will be able to sell health insurance to a vast
number of families who would like to have health care
cover but do not have it.

12. PENSION
 The pension system in India is in its infancy. There are generally
3 forms of plans: provident funds, gratuities and pensions funds.
Most of the pension’s schemes are confined to government
employees (and some large companies). The vast majority of
workers are in the informal sector. As a result, most workers do
not have any retirement benefits to fall back on after retirement.
Total assets of all the pensions plans in India most to less than
USD 40 billion.
 Therefore, there is a huge scope for the development of pension
funds in India. The finance minister of India has repeatedly
asserted that a Latin American style reform of the privatized
pension system in India would be welcome. Given all pros and
cons, it is not clear whether such a whole sale privatization
would really benefit India are not.

13. HR strategy
 Recruitment strategy
 Man power planning
 Cross cultural training
 Work force diversity
 Language diversity
 Compensation and benefits
 Government rules and taxation

14. Strategic Insights
 Glocal strategy – Think globally, act locally
 Geocentric approach to understand the Indian market well
 Market share – 4.03 % in Indian insurance sector compared to
LIC
 Total Assets Under Management – Rs 39,333 crores
 Solvency Ratio - 559.5%
 Claim Settlement Ratio NOP - 93.31%
 Total No. of offices - 1,043
 Latest Award Won - Bloomberg UTV Award 2011 for the best
utilization of Information Technology to transform business
 Our products cater to all the financial needs like - Protection,
Savings, Retirement, Investment & Health for Individuals and
Groups

15. Work culture
 Democratic leadership style
 Flat organization structure
 Interpersonal relationship
 Risk management culture
 Best CSR activities – Eco- Friendly

16. Business performance
BALIC is at fourth position amongst the private life
insurers on the basis of new business premium and
second in terms of the number of policies issued, for
the financial year 2011-12. It wrote new business of Rs.
27.2 billion during financial year 2011-12 compared to
Rs.34.7 billion in the previous year. The gross premium
written for the financial year 2011-12 was Rs. 74.8
billion, as compared to Rs. 96.1 billion in the previous
year, registering a negative growth. Within the private
sector, BALIC market share of New Business premium
was 8.3% for 2011-12.

17. Financial strategy
 Recent budget 2014-2015
 FDI reduces from 49% to 26% which is a boon to Bajaj
– Allianz
 Solvency ratio
 Challenging work environment

18. HR Initiatives
 Attractive Recruitment strategy involves internal as well as
external sources such as Newspaper ads, Campus
placements and Referrals
 Induction programme
 Employee engagement activities
 Weekly review – HR audit
 Implementation of 3 R’s Respect Recognition and
Retention.
 Strong Hr database – tracking and monitoring real time
basis.

19. Retention strategy
 Exit interviews
 Psychological motivations
 Pro - Bono counseling
 Compliment corner
 Events , indoor and outdoor games
 Compensation strategy – promotions , internal transfer ,
better scope , learning, career growth , succession
planning, technologically innovative up-to date.
 Mediclaim
 Maternity leave
 Global career scope

20. Hofstede Culture
 Low power distance
 Masculinity – medium to low scale
 Collectivism
 Result oriented
 Performance driver – Risk taking culture – enablers
 As Europe culture and Asian culture is somewhat
similar so it was a great opportunity for Allianz to
venture into Indian market and made a success till
date.

21. THANKS