Allianz customer

centricity: is
simplicity the way
forward?
Group - 1
 5 c analysis
Founded in 1890, in Germany
Opened first International brand in
the UK
Present in 70 countries
After WW2 they opened their new
headquarter In Munich
Global Workforce of 140,000
employees
Allianz brand stood for “Quality,
Expertise, Trust and Reliability”
which perfectly resonates with the
customers worldwide.
Customers based in 70 countries
103 Million Retailers and
Corporate customers
Insurance market is very
competitive with low barriers of
entry
Established players in the market
Due to the tech evolution smaller
product oriented VAS are getting
more in numbers
Generali, Zurich, Prudential.

Company Customers Competitors

The political environment varies as

per country.
Acquired specialized companies
Insurance laws and regulations
Allianz collaborated with start-ups differ geographically.
like Lemonade to keep up with
Loyalty plays an important role in
emerging techs
the Insurance sector
Small Insurance firms
Changing customer behavior
Technological advancement

Collaborators Context
 Decision Problem
Should Allianz stay with current strategy-
Hyper personalization or should they go
for simplistic approach?
Alternatives
 Product Simplification - Simplicity can be a
game changer for Allianz. Either it can boost
company’s performance or it can fail in a
world where other insurers are prioritizing
hyper- personalization. This strategy has
already worked in Spanish subsidiary . So,
should Allianz adopt this strategy in other
markets .
 Hyper Personalization- Allianz to become
more customer centric, they have to think of 3
important elements of its business model-
products, processes and distribution. If the
complex set of products don’t drive additional
business value, then customers might
complain about the complexity.
 Evaluation of alternatives
1. Product Simplification
Pros:
Cons:
● Standardized offerings across
geographies and across markets ● Loss of opportunity of mapping
customer and hyper-customization
● Less expense ratio
● Cheaper offerings ● Loss of Customer intimacy

● Better profitability ● Less adoptive and late response to

● Simplified offerings for customer to
choose from
● Less time and active involvement of
customer
customer behaviour change as it will be
captured more through hyper-
customization
 Evaluation of alternatives
2. Hyper personalization
Pros:
● Following same trend as industry
● Customer intimacy and data will be
available
● Consumer Behaviour and stickiness can
be checked on regular basis
Cons:
● Complex products can be
overwhelming for customers
● Time to process checks and claims will
be high
● Customers might not appreciate
customization much
● Higher operational cost
 Recommendations
Simplified Product Lines – Giving three option for Premium, Standard, Basic

Disruptive innovation

Acquire new apps & target the tech savy customers

Ai & Analytics to be put into use

Innovative products using satellite imagery for crop Insurance & blockchain technology for Assurance

Chat bot using cognitive computing to issue Insurance without no human aid and hence low overhead cost

CRM gamification models for high customer engagement in Apps & efficiency of agents and RMs
 CONTIGENCY ACTION PLAN
By choosing Simple product lines, AI, and digitization, the company needs to trade off its vast policies,
resulting in various complexities. So, to tackle them, the company needs to use the below strategies.

 They should communicate to the customers on different media platforms on how the simple product lines
will increase efficiency and decrease operational costs, leading them to make low premium insurance.

 The second problem is that using AI and Chatbots to communicate with the customers will raise questions
about the job security and bonus for the agents and brokers. The company needs to inform the agents about
the hybrid models, and in a worst-case scenario, they need to make a compensation plan.

 The third problem is that it will be challenging to manage the existing customers with old policies. So, the
company should map them into those three simple plans based on the previous policies they opted, and they
need to give many offers and discounts for them on the next policy purchase .
THANKS!
ALTERNATIVE RESOURCES