Allianz Versicherung wants to get rid of hundreds of medium-sized companies as customers. This is reported by insurance brokers who buy the covers for these companies. “We have increases for several hundred customers, in some cases up to 400 percent,” says a broker. It’s about property insurance. This protects companies against fire, storm damage and business interruptions.
On average, the asking price is about 20 percent. “In the case of increases of ten percent to 30 percent, Allianz also states that it is willing to negotiate,” says the broker. “With the really steep increases, it’s clear that the insurer no longer wants these companies.”
Take the timber industry as an example: A company that has not suffered any damage in recent years has so far paid around 15,000 euros a year. In the future, Allianz will demand more than 40,000 euros. “Certain sectors no longer fit the Allianz concept,” he adds. This also applies to plastics plants or waste disposal companies. They are all considered to be particularly fire-prone. It doesn’t matter whether companies have recently suffered damage or not.
An Allianz spokeswoman denied that Allianz wants to part with customers. “It’s not about getting rid of risks,” she explained. “But in the last four years, German insurers have made a loss of over five billion euros in property business with industry, commerce and agriculture.” That doesn’t go past Allianz either. Inflation alone has made major claims much more expensive. “That’s why we are currently raising the prices for companies with a high damage potential in some segments so that they can cover the increasing claims requirements.”
Customers and brokers are annoyed by the ruthless approach
This does not go down well with customers. Many companies have suffered from the pandemic and now fear the consequences of inflation and supply chain problems. Allianz Versicherung is not doing badly: In 2021, it achieved a profit after taxes of 671 million euros on sales of 10.4 billion euros.
According to SZ information, the company has put around 2,000 insurance contracts with medium-sized companies up for sale. It is about companies with a turnover of up to 500 million euros. Larger corporations are insured by sister company Allianz Global Corporate & Specialty.
Other companies have already initiated such renovations. In the Allianz case, industrial customers and brokers are particularly annoyed by the brutal crackdown on all companies in a segment that Allianz considers dangerous – regardless of how long the customer has been insured there and whether he has caused a lot of damage.
Rivals like Talanx/ HDI, R+V or Zurich are likely to benefit from this on a large scale. That doesn’t seem to bother the company management under Frank Sommerfeld. She wants to prevent the insurer from being faced with high claims in the next economic downturn. Losses increase in times of recession, often because companies skimp on security.
The current lawn mower campaign hardly uses the image. In medium-sized companies, Allianz is already suffering from its rigid attitude during the pandemic. Unlike its rivals Talanx/HDI and Signal Iduna, Allianz did not pay restaurateurs and hoteliers claims from business closure policies, but (like most insurers) only offered 15 percent of the loss amount.