Allianz seeks expansion in alternative risk transfer through new AGCS structure

Allianz is targeting an expansion in alternative risk transfer ART) through a new structure and leadership at its corporate solutions unit Allianz Global Corporate & Specialty (AGCS).

In line with the growing importance of non-traditional insurance solutions for global businesses, AGCS is reshaping its ART line of business into two new specialist teams. With effect from Nov. 1, 2018, the insurance-linked markets team becomes a standalone line of business known as Capital Solutions, led by current ART chief underwriting officer Richard Boyd. The remaining ART practice groups providing corporate solutions, reinsurance, and climate solutions will continue under the existing name of Alternative Risk Transfer, led by Michael Hohmann who moves to ART from his current position as global head of liability at AGCS.

“Large companies are increasingly seeking to assume more control over their risk management beyond traditional insurance products in property or liability,” said Hartmut Mai, AGCS board member. “With our two new lines of business, we can respond to these needs by designing multi-line, multi-year, parametric or capital-market solutions to protect our clients from earnings and cash flow risks. Our new structure and leadership team will help AGCS to further evolve and grow this important segment of our business,” Mai added.

In its previous ‘combined’ set-up, ART has developed into a major line of business for AGCS globally, contributing €1.14 billion of gross written premiums in 2017, including fronting revenues. Increasingly, larger multinational businesses demand more than a product-based response, looking for customized solutions to their more complex emerging or ‘intangible’ risks which often cannot be covered adequately under traditional insurance, the company said.

The tailormade approach of the new ART line of business brings together AGCS and ART products and services within a bespoke solution, often including non-traditional covers on a multi-line, multi-year basis. It also specializes in services such as fronting for captive (self-insurance) programmes for large corporate customers, using Allianz’s worldwide network of local companies and partners, as well as specialist reinsurance and bespoke weather insurance solutions – for example, to protect businesses such as utility companies against fluctuations in weather patterns which directly affect their revenues.

Similarly, there is increasing demand from both investors and insurers for products which bring together the insurance and capital markets, according to the corporate statement. These so-called insurance-linked securities (ILS’) products are typically where capital market investors such as pension funds are interested in accessing insurance risks to diversify their portfolios, for example through catastrophe bonds, the company said.

Ciara Brady is joining AGCS from Jan. 1, 2019, moving on from her current role as head casualty treaty global and international for Swiss Re to succeed Michael Hohmann as global head of liability. Brady joined Swiss Re in 2005 in Toronto, and since that time has taken on increasingly senior roles in casualty underwriting. She will be based in Zurich, but will travel frequently to key AGCS global locations for the Liability business.

In the interim phase between Nov. 1 and Jan. 1, AGCS’ deputy global head of liability Alfred Henneboehl assumes responsibility for liability, working closely with the global liability leadership team to steer day-to-day operations. The focus of Paul Schiavone, current global head of ART, will shift to his existing regional responsibility as North America head of long tail corporate lines.

Mai commented: “I am delighted to welcome Ciara to AGCS. She will build on the outstanding business that Michael Hohmann has already established over his nine-year tenure as our global head of liability as he now turns his skills to continuing the successful expansion of our solutions and services beyond traditional commercial insurance.”

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