Allianz Group

Advanced analytics used to improve risk management

Published on 14-Aug-2013

"On the group level, we are able to reevaluate our overall portfolio in a single day, whereas it would take weeks or months prior to adopting the IBM solution. We can also run more alternative scenarios and we get a good sense of how to manage market risk in terms of potential hedging strategies." - Marco Hauck, head of middle office, Allianz

Customer:
Allianz Group

Industry:
Insurance

Deployment country:
Germany

Solution:
Algorithmics Solutions, BA - Business Analytics, Big Data & Analytics, Big Data & Analytics: Risk, Smarter Commerce, Smarter Marketing, Smarter Planet

Overview

One of the leading integrated financial services providers in the world, Allianz employs more than 142,000 people to serve approximately 78 million customers in more than 70 countries.

Business need:
Allianz needed to eschew a manual, time-consuming approach to risk management and comply with recent financial regulations by having the equity available to cover losses in the event of a crisis.

Solution:
Allianz built a centralized risk-management platform that provides an accurate view of its overall portfolio.

Benefits:
By implementing a centralized risk-management platform equipped with advanced analytics, Allianz improved its ability to comply with Solvency II regulations and gained greater visibility into its equity on a day-to-day basis.

Case Study

One of the leading integrated financial services providers in the world, Allianz employs more than 142,000 people to serve approximately 78 million customers in more than 70 countries. On the insurance side, the company is the market leader in Germany and has a strong international presence.

The Opportunity
Allianz needed to eschew a manual, time-consuming approach to risk management and comply with recent financial regulations by having the equity available to cover losses in the event of a crisis.

What Makes It Smarter
Allianz built a centralized risk-management platform that provides an accurate view of its overall portfolio. Users can measure risk by running what-if scenarios with parameters such as potential claim rates, investment returns and inflation rates. The resulting insight helps the company plan more effectively for a stable, solvent future.

Real Business Results
By implementing a centralized risk-management platform equipped with advanced analytics, Allianz improved its ability to comply with Solvency II regulations and gained greater visibility into its equity on a day-to-day basis. The new solution accelerates economic portfolio reporting by 99 percent, from six weeks to a single day. Further, Allianz reports that the ability to run what-if scenarios with a wide array of risk parameters helps users flexibly recalculate capital and study the effects on intended decisions.

For More Information
Please contact your IBM representative or IBM Business Partner. Visit us at ibm.com.
To learn more about Allianz, visit www.allianz.com.

Products and services used

IBM products and services that were used in this case study.

Software:
IBM ILOG CPLEX, Algorithmics Economic Capital & Solvency II

Service:
IBM Algorithmic Lab Services

Legal Information

© Copyright IBM Corporation 2013 IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States of America July 2013 IBM, the IBM logo, ibm.com, Algorithmics, ILOG and CPLEX are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml. This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. The client examples cited are presented for illustrative purposes only. Actual performance results may vary depending on specific configurations and operating conditions. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.


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