Allianz AG is a multinational German banking and insurance group, which was founded in Berlin in 1890. Allianz has today their headquarters in Munich. With a staff of over 120,000 worldwide, Allianz is considered as one of the world's largest insurance companies. Their goal is to achieve and becoming the most trusted global financial services provider. Allianz core business can be divided in to three areas: • Property and casualty insurance.
• Life and health insurance.
• Asset management and banking.
In this case, the chief executives Dr. Henning Schulte-Noelle at Allianz had to reach a decision wherever Allianz should acquire Dresdner Bank, Germany’s third largest bank.
Question 1 (2).
Allianz real point of the merger is not cost-cutting, but rather, it is to build a broader and stronger distribution system to sell a full array of financial services, through multichannel distributor. According to the case, some customers were requiring increasingly customized solutions. Customers were also looking for banks and the internet to provide insurance products, in addition to the traditional insurance agents. An insurance producer without a multichannel distribution network would be very vulnerable for Allianz. According to Kumar and Venkatesan (2005) multichannel shoppers purchase more frequently and spend more than single-channel shoppers. Allianz is able increase the order and attract new customers through their multichannel marketer, doesn’t necessarily mean that multichannel shopper is more loyal than single-channel shoppers, Kumar and Venkatesan (2005). There are also weaknesses with multichannel distribution, with bank and agents offering identical or similar products might lead to cannibalizing between channels. This is especially true for insurance agents, who live off their customer base. Inadequate and insufficient positioning of channels and customer segmentation is also a weakness for Allianz. It is very...