Allianz strengthening its ties with Volkswagen in Germany and in emerging markets

Article by Christian Andrei, on August 25, 2010

To widen profits in the cutthroat world of the car insurance market, Allianz AG is building up its ties with Volkswagen AG in Germany as well as in emerging markets. Allianz, the largest insurer in Europe, said that it had signed a letter of intent with Volkswagen Financial Services to expand their sales cooperation agreement.

They also agreed to focus more on the growth markets of Brazil, Russia, India and China. In a statement last Tuesday, Allianz CEO Michael Diekmann said that business with automotive manufacturers is a key global growth market in the highly competitive auto insurance business."

Volkswagen's biggest market is now China, beating out Germany. VW's third largest market is Brazil. Expansion measures are also being done in India and Russia.

For several years, premiums in Germany's 20 billion euro ($26 billion) motor insurance market have been decreasing. In fact, listed insurers such as Allianz, AXA SA, and Assicurazioni Generali S.p.A. are locked in a price war of attrition with mutually owned insurers such as HUK-Coburg AG.

HUK, whose market share has been increasing in Germany, said that price competition will continue to be intense because the market in Germany is not growing.

A HUK spokesman said that the market appears to be divided. Some companies hint that they will stop competing with the same intensity while others have stuck to the policy they've used for the last few years. This spokesman said that prices this year did not seem to have dropped further and in a number of cases had been adjusted upwards. [via autonews - sub. required]

Topics: vw, germany

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Nearly a decade after Opel and sister brand Vauxhall introduced the Insignia large family car, these companies are now getting ready to unveil the second generation of this offering from...
by - December 7, 2016
After we caught a glimpse of the revamped Amarok, VW Australia once again wants to give its ute a sinister look inspired by the Mad Max movie franchise. The “Korama”...
by - December 7, 2016
Customers in the European market are known for leaning towards style and with this in mind, Nissan has revealed the special LEAF Black Edition. While the production run of this...
by - December 7, 2016
When Volkswagen unveiled the VW Atlas, it declared that this SUV is being developed for the United States and is set to arrive as a 2018 model. It also unveiled...
by - December 7, 2016
Did you miss the opportunity to get a brand new Dodge Viper? Well, here’s something you don’t want to miss. Dodge has announced a “final call” for orders for its...
by - December 6, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries