Allianz PNB Life seeks distribution partner

Life insurer Allianz PNB Life Insurance Inc. is on the look out for a new distribution partner that would allow the company to compete in the microinsurance business.

In a roundtable discussion, Allianz PNB Life president and chief executive officer Olaf Kliesow said the company is keen on penetrating the microinsurance industry by next year in another step to further expand its business in the Philippines.

“Hopefully, yes,” Kliesow said when asked if the company is targeting to launch microinsurance products by next year.

“We already tried this year, but the market here for microinsurance is already quite developed. You have large institutions here which already cover big parts,” he said.

To ensure its success in competing in the microinsurance business, Kliesow said Allianz PNB Life is currently looking for potential distribution partners.

“That’s why we’re looking out. If we find the right partner, then we’re definitely ready. And we are talking to a couple of companies right now and hopefully one of those will work out,” he said.

According to Kliesow, Allianz PNB is seeking a partner that has a wide footprint in the Philippines and has capabilities to automate transactions.

“For us, it’s very important to have a distribution partner that has a wide reach and has operational capabilities to really run this without touching the policy. It needs to be automated,” he said.

Rei Abrazaldo, marketing director of Allianz PNB Life, said the company is also looking for a partner that can reach and provide solutions to specific consumer segments.

“When we look into a partner, we make sure that we are able to touch base with a segment that we know we can really be of help. As we said, microinsurance in its traditional form is saturated, but there are consumer segments that we know we can also be part of,” he said.

Allianz PNB Life is a joint venture between German insurer Allianz and the Philippine National Bank.

Part of the joint venture is a bancassurance agreement, allowing Allianz to tap about 660 branches of PNB and PNB Savings Bank.

Currently, Kliesow said almost 100 percent of the company’s business is generated by the bancassurance mode of distribution.