The allianz arena in Munich will feature several games in the upcoming World Cup in Germany.

Next month will see Allianz AG, a Germany-based insurance giant that has a joint venture with Bank of Ayudhya (BAY) and the CP Group, get a head start thanks to the World Cup, as matches in Munich will be played at Allianz Arena, the giant doughnut-shaped building regarded by many as the world's most innovative sports stadium.

In August the new English Premier League season will see the name of rival insurance group American International Group (AIG), the leader in the Thai insurance market, printed on the shirts of league giants Manchester United. AIG paid a huge sum to the club for this weekly exposure, largely to football fans in Asia.

"Who is Man U" anyway?," quipped Bruce Bowers, CEO for Allianz's operations in 14 Asian countries.

Bowers said that Allianz was already highly visible in the sports sector thanks to deals with Formula One racing, which has a huge global TV audience, as well as being the main sponsor of the upcoming America's Cup, the top competition for the world's most technologically advanced sailing boats.

"We are more specific … sharp-shooter, not shotgun," he said.

Bowers and several Allianz country heads from around Asia were in Phuket last week for a meeting with Werner Zedelius, a member of the board of management at Allianz.

With growth-written premiums in the Asia-Pacific region up 80 per cent over the previous year, and a doubling of operating profits to ¤36 million (Bt1.76 billion), they have good reason to be optimistic.

Zedelius singled out spectacular performances of Allianz and partners in India, China and Thailand. It seems that Wilf Blackburn, president of Ayudhya Allianz CP Life Insurance Co (AACP), has delivered after being posted to Bangkok in 2004 to put the previously money-loosing joint venture back on track. The Thai unit has been restructured and profitability restored.

Alternative business channels were successfully built up by reducing the traditional reliance on sales done through the "agency".

Blackburn said it was now the leader in direct marketing and aimed to become the leader in "bancassurance". Last year the company climbed to third behind American International Assurance and Thai Life Insurance Co and is now the most heavily capitalised.

"We aim to grow through greater distribution, expand through franchising and [start] TV shopping," he said, adding that innovation remained Allianz's core strategy.

Blackburn predicted AACP taking the lead with an insurance product that allowed clients to share the upside in the money invested. Traditionally the return is guaranteed.

AACP is also opening branches in Chiang Mai and Phuket and will soon be welcoming the participation of GE Money in BAY as Allianz and GE are already working together on some direct-sale business in Thailand.

Zedelius added: "We are very pleased with Thailand. [It has been achieved] with a lot of work … pain and sweat."

However, Zedelius said that despite the rosy picture in Asia, it was important that Allianz work for the future to sustain its success and remain customer-focused.

Singapore-based Bowers said the dynamism of the Asian market was at the same time intensely competitive but Asia also embraced multi-platform selling channels including Internet websites, where Allianz was adopting back-office technology support.

Pana Janviroj

The Nation

Phuket