Allianz, a global leading insurance company, operates a significant property and casualty (P&C) business in Germany, where it faces a highly competitive and fragmented motor insurance market. This intense competition has led to years of price battles, resulting in limited margins for many participants.
Despite maintaining a stable motor insurance portfolio since the 2000s, Allianz had experienced limited growth, primarily serving “traditional” customer segments with high personal service needs with its 8,000 agents across Germany.
Inflation has compounded these challenges, and several natural catastrophes—including a significant flood in Ahrtal, Germany—has further added uncertainty over the past three years.
To lead in this challenging market, Allianz collaborated with McKinsey to tackle these challenges and achieve significant profitable growth by fundamentally redesigning their motor insurance value proposition, leveraging a granular benchmarking process against best-in-class competitors.
