Stakeholder Expectations Survey - December 2009
Study design Target group Stakeholders of Allianz SE from the fields of politics, media, NGOs, academia, the corporate sector, and managers at Allianz Survey period Oct.12, 2009 Nov. 19, 2009 Survey method Written questionnaire, self-completing questionnaire Institute Gesellschaft für Konsumforschung (GfK) Financial Market Research Division, Nuremberg, Germany Commissioned by Allianz SE, Munich, Germany 2 Participants Response ratio NGOs Politics Economists (Germany) (Germany + international) (Germany / Federal) Allianz (Executive employees, Germany + international) Media (Germany + international) Corporate sector (Germany + international) Other stakeholders (business area not specified) Total responses 23 9 37 14 23 19 0 125 2007 Percentage of subgroup 18% 7% 30% 11% 18% 15% -- Total responses 19 12 46 7 29 16 2 131 2009 Percentage of subgroup 15% 9% 35% 5% 22% 12% 2% 3
Study design Project targets/content Issues of social and commercial relevance for Allianz Expectations of Allianz regarding: Handling of relevant issues Climate protection Growth strategy Competitiveness Indicators by means of which Allianz s commitment should be aligned and measured Expectations regarding how commitment should be communicated Involvement of stakeholders in new issues and Allianz s commitment Compliance with values and governance rules 4 Scale Please give your opinion on a scale of 1 to 7, where 1 is I strongly agree and 7 is I strongly disagree. Strongly agree Do not agree at all 1 2 3 4 5 6 7 Top box (1-2) important Middle box (3-5) indifferent Low box (6-7) unimportant 5
What issues should Allianz focus on? Issues I Demographic change Capital market stability 80% 4 12 Education General financial education (financial literacy) New technologies risk management How society deals with risks 61% 61% 61% 59% 5 new 8 new Climate protection Health Economic development in developing and emerging markets Business ethics 52% 49% 48% -13-5 -2 1 Question 1: As a financial services provider, which business and social issues do you think Allianz should commit itself to in the future? In your opinion, how important would it be for Allianz to deal with the following issues? Base of all responses: n=131 6 What issues should Allianz focus on? Issues II Senior citizens 44% -5 Children and adolescents 40% 2 Europe as a business location 38% -11 Energy security Consumer protection Equal opportunity (diversity) 38% 36% 36% new 1 5 Germany as a business location 35% -10 Road safety Environmental, species and animal protection Labor market 30% 30% 27% new 1 5 Question 1: As a financial services provider, which business and social issues do you think Allianz should commit itself to in the future? In your opinion, how important would it be for Allianz to deal with the following issues? Base of all responses: n=131 7
What issues should Allianz focus on? Issues III Corruption 26% -12 Human rights 26% 6 Tax policy 26% -1 Conflicts (cultural/political/religious) 25% -5 Civic commitment in the community 22% 1 Terrorism 16% -5 Right-wing extremism 9% -1 Art and culture Nazi past 8% 7% -5-5 Question 1: As a financial services provider, which business and social issues do you think Allianz should commit itself to in the future? In your opinion, how important would it be for Allianz to deal with the following issues? Base of all responses: n=131 8 Issues impact of the financial crisis? Issues Capital market stability 80% 12 General financial education (financial literacy) Climate protection Health 61% 52% -13-5 new Capital market stability and general financial education are taking the place of conventional issues such as climate protection and health. Business ethics 48% 1 Consumer protection 36% 5 Question 1: As a financial services provider, which business and social issues do you think Allianz should commit itself to in the future? In your opinion, how important would it be for Allianz to deal with the following issues? Base of all responses: n=131 9
How should Allianz tackle these issues? Tackling issues I By offering financial instruments and insurance policies as before and by settling claims promptly and fairly 3 By helping its customers to avoid claims by providing information and risk management 80% 0 By exchanging expertise and developing new solutions with NGOs and other partners 57% 14 By concentrating its corporate citizenship activities on these issues 55% 10 By using the brand s renowned reputation and including these issues and commitments in Allianz s customer communications and advertising 53% 5 Question 2: How should Allianz handle the topics you prioritize? How do you expect Allianz to approach these issues? Base of all responses: n=131 10 How should Allianz tackle these issues? Tackling issues II By offering cheaper tariffs or other incentives to promote desirable development (e.g. renewable energy) 51% 6 By not insuring (or financing or investing in) socially undesirable risks and projects (e.g. that violate social and ecological standards) 9 By offering solutions and products above and beyond financial services (e.g. financial services and products for senior citizens; financial services for the running of social institutions such as hospitals and retirement/ senior-citizen homes) By offering solutions in areas/to customers where a reasonable return cannot be achieved or cannot yet be achieved (e.g. microinsurance policies) 46% 42% 5 10 By operating exclusively in accordance with the needs of its customers and markets (without exerting social or political influence on customers) 22% -6 Question 2: How should Allianz handle the topics you prioritize? How do you expect Allianz to approach these issues? Base of all responses: n=131 11
How should Allianz tackle the issue of climate? Climate Develop and offer products and services that promote climate protection Reduce its own carbon emissions Invest in accordance with climate criteria Advise customers on climate protection Enhance awareness through communication Increase or lower premiums depending on carbon emissions Become carbon neutral Enhance awareness through advertising Enhance awareness through insurance agents/ sales department 73% 67% 59% 59% 53% 48% 47% 34% 29% 3 6 6 6 new 8 11 14 14 Question 3: If we decide to tackle the topic of "climate" in specific terms, how should Allianz approach this issue? In your opinion, how important would it be for Allianz to deal with the following aspects? Base of all responses: n=131 12 How should Allianz generate growth? Future growth Allianz should position itself as a leader for innovations and solutions 76% -3 Allianz should position itself as an ethical company 72% 6 Allianz should commit itself to these issues before other companies and strive to take the lead 62% 4 Allianz should concentrate more on those new issues that promise short to medium-term growth 49% 1 Allianz should invest more in growth markets (e.g. BRIC = Brazil, Russia, India, China) 39% -3 Allianz should concentrate on its ongoing business, strengthen its customer focus and not take any risks with regard to these new issues and markets 20% -3 Question 4: How should Allianz generate future growth? Which of the following growth strategies would be important for Allianz in your opinion? Base of all responses: n=130 13
How should Allianz counter growing competition? Competitive pressure By maximizing customer orientation -3 By means of innovations and solutions to problems 77% 0 By means of strong branding 7 By leading the way in terms of efficiency and costs 55% -2 By being the first mover in new issues and markets By achieving a return that is equivalent to, or higher than, that offered by its competitors 49% 35% -17-8 By transferring expertise and cooperating with a network of NGOs and other competent partners 35% -7 Question 5: How should Allianz counter growing competitive pressure? Which of the following approaches would be the most promising for Allianz in your opinion? Base of all responses: n=131 14 How should Allianz measure its success? Measuring success Customer satisfaction Employee satisfaction Profitability (earnings, returns) Acceptance in society Maintaining corporate independence 94% 74% 68% 65% 53% -8-1 3 5 new Growth Sustainability ratings (e.g. Dow Jones Sustainability Index, FTSE4GOOD) Ratings (e.g. Standard & Poor's) Market capitalization Turnover 51% 47% 31% 28% 26% -7-11 -16-9 2 Question 6: What indicators should serve as a basis and a yardstick for Allianz s commitment? Base of all responses: n=131 15
What communication strategy should Allianz pursue? Communication Through the media and PR work 80% -4 On the company s own website (www.allianz.com) Through dialog events with stakeholders Through the company s own (sustainability) report 67% 57% 47% new 0 1 At analysts meetings 46% -4 Through an Internet dialog platform with nongovernmental organizations and other partners (e.g. www.knowledge.allianz.com) In the company financial report 45% 43% -12 9 Through advertising 36% 0 At the general shareholders meeting 35% -11 Through insurance agents 34% new Question 7: How should these issues and Allianz's commitment be communicated and made transparent? Which media do you feel to be suitable and important? Base of all responses: n=131 16 How should Allianz involve stakeholders? Stakeholder involvement Through new product and service offers 59% -7 Through dialog events 58% 6 Through information offers (e.g. www.knowledge.allianz.com) 54% 2 Through opportunities to participate in Allianz s corporate social responsibility (donations, funds, active participation) 51% -3 Through the general shareholders meeting 31% 2 Through local offers from insurance agents 28% new Question 8: How should stakeholders (customers, shareholders, employees, society) be involved in new issues and Allianz s commitment? Base of all responses: n=131 17
What services would you use? Offers to stakeholders Dialog events 58% Possibility to participate in Allianz s corporate citizenship initiatives 40% Allianz website (www.allianz.com) 36% Internet information and dialog platform from Allianz and partners (www.knowledge.allianz.com) 33% I am not particularly interested in becoming involved 13% Question 9: Which Allianz offers would you yourself like to be more involved in so that you can play a role in Allianz's new commitment and issues? Or is such direct involvement of less interest to you? Base: n=129 (excl. non-responses) 18 What values and rules should Allianz observe? Statements on values and governance rules Benefit for customers is important 90% 1 The competitiveness of the company and appropriate market capitalization are important 75% -8 Benefits for society through solutions that go beyond business and profitability are important 66% 0 Job losses despite current profits are justified if other jobs and competitiveness can be safeguarded in the long term 54% -5 Question 10: Which messages, values and governance rules should Allianz and its employees consider in terms of their commitment? Base of all responses: n=129 (excl. non-responses) 19
What values and rules should Allianz observe? The following should be observed and adhered to The company s own management guidelines -2 The company s own Code of Conduct 82% -2 The German Governance Code 77% 9 The OECD guidelines for multinationals 4 The principles of Transparency International 66% 2 The 10 principles of the UN Global Compact 66% 5 Question 10: Which messages, values and governance rules should Allianz and its employees consider in terms of their commitment? Base of all responses: n=129 20 Back-up 21
Back-up 21
Management Summary I Stakeholder Expectations of Allianz Issues of social and commercial relevance for Allianz As in previous years, demographic change was cited as the most important relevant issue. Alongside demographic change, three overarching issues were deemed to be of particular relevance - education, capital market stability and dealing with risks (in relation to new technologies and from a social perspective). The issues of terrorism, right-wing extremism, the Nazi past as well as art and culture have practically no significance. Handling of relevant issues As in the past, Allianz s main expectation is that it will offer financial instruments, be generous in the adjustment of claims and assist its customers in avoiding losses. There is also an expectation that the company will display even more commitment to issues that extend beyond this, e.g. in the form of working partnerships with NGOs and as regards social action. Climate protection Allianz should act as a role-model as far as climate issues are concerned. In this respect, respondents attached considerable importance to the development of products and services for climate protection, the reduction of the company s own emissions and to investments made based on climate-related criteria. Growth strategy As far as generating future growth is concerned, Allianz is expected to exhibit innovative methods of action in various respects: as a solution leader and as an ethical company. 22 Management Summary II Competitiveness Allianz should counter increasing competitive pressure by focusing on maximum customer orientation and developing innovative products and solutions. In addition to these two aspects, the current survey contained one other point that has become more important: countering competitive pressure by means of a strong brand. Measuring Success From the stakeholder perspective, customer satisfaction is the best indication of success, even more so than profitability and employee satisfaction. Acceptance within society is another significant aspect. Expectations regarding communications The stakeholders believe that the most important communication channels for Allianz are press relations via the media and the Internet. As far as the Internet is concerned, the most relevant channels cited are the company's own Internet site, as well as the Allianz knowledge site, an Internet dialog platform with NGOs. Involvement of stakeholders Stakeholders want to be involved in Allianz s new issues and areas of commitment through new product and service offers. Dialog events and information services (Internet) also have a relevant role to play. Compliance with values and governance rules Customer benefit should always be the focal point of the commitments made by Allianz and its employees. As regards integrity, stakeholders place particular emphasis on compliance with the company's own management guidelines, its own code of conduct and with the German Governance Code. 23
Stakeholder profile Politics I Significant issues Allianz Growth How? Capital market stability/capital market sustainability 92% Allianz should position itself as a leader for innovations and solutions. Demographic change Education 91% 75% Allianz should position itself as an ethical company. Allianz should commit itself to these issues before other companies and strive to take the lead. 92% 58% What s expected from Allianz How? Competitiveness How? By offering financial instruments and insurance policies as before and by settling claims promptly and fairly By helping its customers to avoid claims by providing information and risk management By using the brand s renowned reputation and by including these issues and commitments in Allianz s customer communications and advertising 92% 67% By maximizing customer orientation By means of innovations and solutions to problems By being the first mover in new issues and markets 67% By offering solutions in areas/to customers where a reasonable return cannot be achieved or cannot yet be achieved (e.g. microinsurance policies) 67% for the respective issues; if more than one statement ranks third with the same value, these will also be displayed. Basis n=12 very small basis. Statements can 24 only point towards general trends! Stakeholder profile Politics II Communications How? Transparency/measurement How? Through the media and PR work 92% Customer satisfaction 92% Through the company s own (sustainability) report On their own website (www.allianz.com) 58% Employee satisfaction Profitability (earnings, returns) Sustainability ratings 82% 75% 75% Inclusion How? Through opportunities to participate in Allianz s corporate social responsibility Through dialog events Through information offers (e.g. www.knowledge.allianz.com) 67% Pay attention to Benefit for customers is important. Benefits for society through solutions that go beyond business and profitability are important. The company s competitiveness and appropriate market capitalization are important. 58% We need to pay attention to and comply with:...the German Governance Code 92%...The company s own management guidelines 67%...The 10 principles of the UN Global Compact 67% for the respective issues; if more than one statement ranks third with the same value, these will also be displayed. Basis n=12 very small basis. Statements can 25 only point towards general trends!
Stakeholder profile Media I Significant issues Allianz Growth How? Demographic change Capital market stability/capital market sustainability Education 93% 93% 62% Allianz should position itself as a leader for innovations and solutions. Allianz should concentrate more on those new issues that promise short to mediumterm growth. 68% 61% Allianz should position itself as an ethical company. 59% What s expected from Allianz How? Competitiveness How? By offering financial instruments and insurance policies as before and by settling claims promptly and fairly By helping its customers to avoid claims by providing information and risk management By offering solutions in areas/to customers where a reasonable return cannot be achieved or cannot yet be achieved (e.g. microinsurance policies) 90% 57% By maximizing customer orientation By means of innovations and solutions to problems By means of strong branding 79% for the respective issues; if more than one statement ranks third with the same value, these will also be displayed. Basis n=29 very small basis. Statements can 26 only point towards general trends! Stakeholder profile Media II Communications How? Transparency/measurement How? Through the media and PR work Customer satisfaction Through dialog events with stakeholders 61% Employee satisfaction 76% On the company s own website (www.allianz.com) 57% Acceptance in society 76% Inclusion How? Through dialog events 74% Pay attention to Benefit for customers is important. 89% Through information offers (e.g. www.knowledge.allianz.com) 62% Benefits for society through solutions that go beyond business and profitability are important. 68% Through opportunities to participate in Allianz s corporate social responsibility 56% The company s competitiveness and appropriate market capitalization are important. 61% We need to pay attention to and comply with:...the German Governance Code 82%...The company s own management guidelines 79%...The company s own Code of Conduct 75% for the respective issues; if more than one statement ranks third with the same value, these will also be displayed. Basis n=29 very small basis. Statements can 27 only point towards general trends!
Stakeholder profile NGO I Significant issues Allianz Growth How? How society deals with risks Demographic change Capital market stability/capital market sustainability Education Economic development in developing and emerging markets 61% Allianz should position itself as an ethical company. Allianz should position itself as a leader for innovations and solutions. Allianz should commit itself to these issues before other companies and strive to take the lead. 79% 63% 63% Business ethics What s expected from Allianz How? Competitiveness How? By exchanging expertise and developing new solutions with NGOs and other partners By means of innovations and solutions to problems 74% By helping its customers to avoid claims by providing information and risk management By not insuring (or financing or investing in) socially undesirable risks and projects 78% 78% By transferring expertise and cooperating with a network of NGOs and other competent partners By means of strong branding 68% 56% for the respective issues; if more than one statement ranks third with the same value, these will also be displayed. Basis n=19 very small basis. Statements can 28 only point towards general trends! Stakeholder profile NGO II Communications How? Transparency/measurement How? Through dialog events with stakeholders 68% Customer satisfaction 84% On the company s own website (www.allianz.com) Through an Internet dialog platform with nongovernmental organizations and other partners 63% 63% Employee satisfaction Acceptance in society 79% 63% Inclusion How? Through dialog events Through new product and service offers Through information offers (e.g. www.knowledge.allianz.com) 84% 68% 58% Pay attention to Benefits for society through solutions that go beyond business and profitability are important. Benefit for customers is important. The company s competitiveness and appropriate market capitalization are important. 74% 68% 53% We need to pay attention to and comply with:...the OECD guidelines for multinationals 89%...The 10 principles of the UN Global Compact 89%...The principles of Transparency International for the respective issues; if more than one statement ranks third with the same value, these will also be displayed. Basis n=19 very small basis. Statements can 29 only point towards general trends!
Stakeholder profile Economists I Significant issues Allianz Education Business ethics Capital market stability/capital market sustainability Growth How? Allianz should position itself as a leader for innovations and solutions. Allianz should position itself as an ethical company. Allianz should commit itself to these issues before other companies and strive to take the lead. 67% What s expected from Allianz How? By offering financial instruments and insurance policies as before and by settling claims promptly and fairly By exchanging expertise and developing new solutions with NGOs and other partners By helping its customers to avoid claims by providing information and risk management 57% Competitiveness How? By maximizing customer orientation By means of innovations and solutions to problems By means of strong branding By not insuring (or financing or investing in) socially undesirable risks and projects 57% for the respective issues; if more than one statement ranks third with the same value, these will also be displayed. Basis n=7 very small basis. Statements can 30 only point towards general trends! Stakeholder profile Economists II Communications How? Transparency/measurement How? Through the media and PR work Customer satisfaction Through dialog events with stakeholders Acceptance in society Through an Internet dialog platform with nongovernmental organizations and other partners Employee satisfaction Inclusion How? Through opportunities to participate in Allianz s corporate social responsibility Through dialog events Pay attention to Benefit for customers is important. Benefits for society through solutions that go beyond business and profitability are important. Through information offers (e.g. www.knowledge.allianz.com) 57% The company s competitiveness and appropriate market capitalization are important. We need to pay attention to and comply with:...the company s own Code of Conduct...The company s own management guidelines The 10 principles of the UN Global Compact for the respective issues; if more than one statement ranks third with the same value, these will also be displayed. Basis n=7 very small basis. Statements can 31 only point towards general trends!
Stakeholder profile Companies I Significant issues Allianz Capital market stability/capital market sustainability 75% Growth How? Allianz should position itself as a leader for innovations and solutions 81% Demographic change General financial education (financial literacy) Allianz should commit itself to these issues before other companies and strive to take the lead. 81% Allianz should position itself as an ethical company. 67% What s expected from Allianz How? Competitiveness How? By offering financial instruments and insurance policies as before and by settling claims promptly and fairly By helping its customers to avoid claims by providing information and risk management By not insuring (or financing or investing in) socially undesirable risks and projects 94% 88% By maximizing customer orientation By means of innovations and solutions to problems By means of strong branding 88% 81% 56% for the respective issues; if more than one statement ranks third with the same value, these will also be displayed. Basis n=16 very small basis. Statements can 32 only point towards general trends! Stakeholder profile Companies II Communications How? Transparency/measurement How? Through dialog events with stakeholders 75% Customer satisfaction Through the media and PR work Acceptance in society 75% On the company s own website (www.allianz.com) Profitability (earnings, returns) Maintaining corporate independence Inclusion How? Through dialog events Through new product and service offers Through opportunities to participate in Allianz s corporate social responsibility 63% 56% Pay attention to Benefit for customers is important. The company s competitiveness and appropriate market capitalization are important. Job losses despite current profits are justified if other jobs and competitiveness can be safeguarded in the long term. 94% 75% We need to pay attention to and comply with:... The company s own management guidelines 94%... The company s own Code of Conduct 81%... The OECD guidelines for multinationals 81% for the respective issues; if more than one statement ranks third with the same value, these will also be displayed. Basis n=16 very small basis. Statements can 33 only point towards general trends!
Stakeholder profile Allianz I Significant issues Allianz Demographic change 96% Growth How? Allianz should position itself as a leader for innovations and solutions. 74% Capital market stability/capital market sustainability New technologies risk management 78% Allianz should position itself as an ethical company. Allianz should commit itself to these issues before other companies and strive to take the lead. 74% 61% What s expected from Allianz How? Competitiveness How? By helping its customers to avoid claims by providing information and risk management By offering financial instruments and insurance policies as before and by settling claims promptly and fairly By offering solutions and products above and beyond financial services 87% 87% 61% By maximizing customer orientation By means of strong branding By leading the way in terms of efficiency and costs 91% 81% 72% for the respective issues; if more than one statement ranks third with the same value, these will also be displayed. Basis n=46 small basis! 34 Stakeholder profile Allianz II Communications How? Transparency/measurement How? Through the media and PR work 87% Customer satisfaction 94% On the company s own website (www.allianz.com) At analysts meetings 78% 58% Profitability (earnings, returns) Employee satisfaction 87% 74% Inclusion How? Through new product and service offers Through information offers (e.g. www.knowledge.allianz.com) Through dialog events 56% 36% Pay attention to Benefit for customers is important. The company s competitiveness and appropriate market capitalization are important. Job losses despite current profits are justified if other jobs and competitiveness can be safeguarded in the long term. 93% 73% We need to pay attention to and comply with:... The company s own Code of Conduct 98%... The company s own management guidelines 93%... The German Governance Code 82% for the respective issues; if more than one statement ranks third with the same value, these will also be displayed. Basis n=46 small basis! 35
Statistics Region/stakeholders Region Stakeholders 80% Germany 80% 36% Allianz 62% Politics 60% Europe 60% 9% Media 40% 20% 0% 29% 4% 5% North America Asia/ Australia 40% 20% 0% 23% 15% 5% 12% NGOs Economists Corporate sector Question 12: Which region do you mainly live and work in? Base of all responses: n=129 (excl. non-responses) Question 11: Which field/organisation/area of business do you work in? Base of all responses: n=129 (excl. non-responses) 36