00:00So, right, it's a pleasure to have you here. We are short of time, so I don't want to take
00:09up your time.
00:10So, you can start telling us what this audience identify as these megatrends that are directly impacting in this business.
00:23Sure, there are a few megatrends that come to my mind that I believe are important to have on your
00:30radar.
00:31First and foremost, the demographic change and the longevity.
00:36You know, with all the crisis around us, we keep on forgetting this, but especially the European societies are aging
00:42rapidly, and at the same time, they're getting older.
00:45By the way, it's not only in Central Europe, it's also in China, which people forget that China currently has
00:531.5 billion people until 2050, and 2050 is around the corner.
00:58The Chinese population will shrink to 750. They will shrink by 50%. That will have an impact on world economy.
01:06And at the same time, India is doubling their size from 1.4 to 2.8 billion people.
01:13So, that's something that we should have on the radar. For us, with the aging societies, for us also in
01:18Spain, that's happening, that has an impact on healthcare, on assisted living, on your retirement, savings, pensions.
01:29All of this is one topic that I would like to mention.
01:32Second topic, climate change and sustainability.
01:35Especially Spain is affected heavily by the climate change, and on all ends, by the way.
01:41Here in Spain, you have droughts, you have torrential rains.
01:45For the last couple of years, we haven't had it before.
01:48Hail in the south, snow in Madrid, you name it.
01:52So, the climate change is affecting us heavily, especially also in Spain, and we need to be aware of it,
01:59because we need to protect ourselves against it.
02:02What else?
02:04Cybersecurity.
02:05Manny mentioned it also in his speech.
02:09We, in Allianz, we get cyberattacks by the minute.
02:14We have dozens of cyberattacks every day.
02:16That's a topic that we need to put on the radar and make sure that people are aware.
02:21That's a topic that's going to stay and will impact all of us running companies.
02:26And, obviously, last but not least, artificial intelligence will certainly change our industry, probably most of yours as well.
02:36And I just want to give you a quick example.
02:39A couple of weeks back, I was in India, and I had the opportunity to talk to a founder of
02:45a fintech for apps.
02:47He's developing apps.
02:49Sounds so simple.
02:52Well, the issue is, if we here in Spain want to upgrade our app, it takes us a year to
03:01upgrade an app, and it probably costs us a million, without revealing any full numbers.
03:07Well, this guy is developing the very same app from scratch, including coding, testing, handing it over to you, fully
03:16-fledged, in 15 minutes for two and a half thousand euros.
03:21So that's the new reality.
03:24That's something that is already happening.
03:27Something that we should address, and I would also say we need to adopt the technology that is out there
03:33in order to protect us and be ahead of the game.
03:36And, look, last but not least, I think, as Allianz, what we're trying to do is to move away from
03:42being reactive, compensating your claims, to being preventive, to be there with you to prevent the claim in the first
03:51case.
03:52For an insurance company, the risk-price balance is a daily challenge.
03:58Yes.
03:59So, in a certain uncertain market and world, how does Allianz maintain its competitiveness?
04:09Well, I think, for our competitiveness, I would like to highlight three points.
04:14First, the financial stability, then data-driven pricing, and the third, the operational agility.
04:22Let me quickly touch on all three of them.
04:24Financial stability.
04:25Look, we are not only one of the leading insurers in the world, we are also one of the leading
04:29asset managers in the world.
04:30We are not managing billions, we are managing trillions.
04:34We are one of the top five asset managers.
04:36That gives you financial stability.
04:37And that also creates peace of mind for our clients, and obviously, you know, makes you feel at ease with
04:47a financial power like this behind you.
04:50This paired, by the way, with the brand, we're one of the top 25 leading brands, gives you a good
04:57feeling, you know, and a competitive advantage, I would say.
05:00Secondly, data-driven pricing.
05:02We are sitting on a bulk of data that we have not yet fully leveraged like other industries.
05:09And I think this is a huge opportunity for us to increase our competitive advantage by really using the data
05:16for every single customer's benefit.
05:20That we are adjusting our products to your specific needs, which we always say we do.
05:25But I think with more and more data points, we can get much better on doing so.
05:29And that's an area that I think is important.
05:33Last, the operational agility.
05:35Let me take this example of the Dana in Valencia.
05:41First of all, we've been informing all of our clients in the affected areas up front with alert SMS so
05:48that they were not running into this disaster open-eyed.
05:52Secondly, within 24 hours, we had contacted 39,000 people in this area to make sure that we are at
06:01their side and help them as good as possible in this tragic happening.
06:06That's an agility you need to have in order to fulfill your promises.
06:09You know, and that's what I mean with operational agility.
06:12You know, you need to be able to adapt to the changes that are happening and the shocks that come
06:16from the inside and also the outside.
06:18By the way, one fact that is not so well known, but I think is something that we also need
06:23to bring to the surface is, in Spain, there are millions of Spaniards living in designated flood zones.
06:31It's a topic that is not often brought up, but, I mean, look, I mean, if this is not something
06:35we take serious, it's just a matter of time that we have a second Valencia.
06:41You talked before about retirement, health, asset management, cyber attacks.
06:49So, what growth potential does Allianz in Spain see in Spain and in which business lines?
06:57Well, one of my pain points, there are many, but one of my pain points that I have is that
07:02we are still seen in Spain as a motor insurer.
07:06Yeah.
07:07Yes, which is sad, no?
07:08Thanks for confirming, but that's the sad truth.
07:13And now I'm in my fourth year here and I haven't managed to turn this around.
07:17So, just for the audience, we have 25 different products.
07:20We do everything for you.
07:22We can solve all your financial needs that you have.
07:24And for me, this is one of the areas where I say, well, there's a huge potential.
07:30We are having close to 5 million clients in Spain.
07:34We are having 8 million policies, but let's say the penetration per client is very low.
07:41So, while you see in other countries that people have up to 6, 7 policies,
07:48and they perceive it as value-adding, in Spain, we often have one or two policies.
07:52So, one of my tasks that I still try forward, besides making us a full-fledged insurer, in the public
08:00understanding,
08:01it's also that we manage to convey the value of insurance for the people.
08:08There's a huge value in protecting your wealth moving forward, but then you also need to understand that it comes
08:14for a price.
08:15And if you buy health insurance privately for 80 euros, what do you expect?
08:23In Germany, you pay 500 euros for that, but then you're fully covered.
08:26So, the value of insurance, I think, is something we need to address, and diversifying our portfolio.
08:33How is the target about to catch some clients to take some policies?
08:39So, you said that in Spain, you can offer one, two policies per client.
08:46In Germany, for example, it's very different, no?
08:50Yes, well, what we're trying to do is that we create this awareness that there is a protection gap
08:58that you have on the PNC side, but also on the life side.
09:01And that's something that we're trying to inject in our thousands of agents that we have across the country
09:07to make sure that they serve the clients better.
09:10So, we're not trying to catch, we're trying to convince.
09:13Okay. Thanks for the...
09:15Sure.
09:18How is Allianz adapting to the climate change here in Spain and in the rest of the world?
09:29Well, first of all, I think it's important that we're not doing greenwashing,
09:32so we're taking it very serious, and we also take our role in society very serious.
09:36We are one of the founders of the Faculty of Sustainability of the ESE Business School,
09:41and working across industries in this faculty to create solutions to protect our climate moving forward.
09:49I think this is important because we have a responsibility in society, and we try to adhere to it.
09:55Then, in the country ourselves, we again do what we can do.
10:02We shifted to 100% green energy.
10:06Within Spain, we moved from flying to taking the train,
10:13because your train system here, I don't know whether you're fully aware how happy you can be about your train
10:18system.
10:19I think 97% of the cases, at least until the recent incidences, the trains are punctual.
10:26In the world, in Germany, it's 10%.
10:28So if you start a journey, you never know when you arrive.
10:31Here, you have a good planning security.
10:34So we moved from taking planes to taking trains.
10:38We completely shifted our company's car fleet from combustion to hybrid to now electronic vehicles.
10:46We have full commitments in the group for carbon neutral setup by 2030, I think,
10:52a net zero by 2050, which we kept despite the fact that it seems in society this topic has been
11:00diluted a bit.
11:01Especially coming from the U.S., we stick to our commitments and try to really contribute to this topic.
11:09I think we have time to do one more question.
11:12So it is known that insurance companies are a key institutional investment.
11:17So how do you view the U.S. intentions to unlock more capital and make insurance do a key institutional
11:31investment?
11:33Well, I think that we already see that insurance plays a very vital role in uncertain environments.
11:41We're trying to unify.
11:43We are present in more than 70 countries.
11:46We are creating peace of mind.
11:50We heard it before with money also.
11:52We give trust into the future.
11:55We are there for you, for your investments.
11:57And that's something that I believe is becoming more and more important.
12:01So if you ask me, if I look at the insurance sector moving forward, what I see is an increasing
12:07demand in solutions that protect you and your wealth.
12:12And that is something that we are trying to provide to society, not only here, but globally.
12:18So, Vite, thanks for joining us.
12:21And I hope the next interview will be in Spanish.
12:24Yeah, we talked about it before.
12:25He told me I can come back, but then I need to do it in Spanish.
12:28So next year, let's see if we do it in Spanish.
12:30Let's see, let's see.
12:31Thank you.
12:32Thank you.
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