Allianz SE announced that it has launched a new division for Economic Research and Strategic Development. The new internal consulting division, which combines economic research and Allianz’ strategic corporate development under one roof, will officially begin work on January 1, 2009.
The new division’s objective “is to devise strategic courses of action based on economic research and long-term trend analysis,” said the bulletin. “Drawing the right consequences from evolving needs as a result of the financial crisis is one of the current tasks. The most important fields of research include global economic scenarios, international financial market trends, insurance and asset management markets, competitive and customer behavioral trends, as well as the opportunities and risk analysis derived from them.”
“Group Economic Research and Development will work closely together with the scientific world, and has thus launched a new ‘Allianz Research-Fellowship Program,’ which enables highly-qualified scholars to collaborate with Allianz for up to twelve months on economic and strategic projects.”
Chief Economist Professor Dr. Michael Heise, who will head the new division, commented: “Thanks to this unique combination of research and strategic development, we are creating a completely new form of strategic consulting that is truly singular in the insurance business.
In a companion interview on the Allianz web site (www.allianz.com), Heise added that the “crisis action plan of the G7 states creates urgently needed latitude for the financial sector.” The action of the G7 states and the national government rescue packages have been given a good reception from the stock markets. What is your assessment of these measures?
“We are dealing with an international systemic crisis,” he continued, “and since the weekend we have got finally an internationally coordinated approach working toward a solution right across the systems. This was absolutely essential in order to prevent a total collapse. But we shouldn’t be under any illusions. The downward spiral has been stopped, but this doesn’t mean that the situation will start to move upward at the same pace. We are at the beginning of the solution. Repairing bank balance sheets will require some hard work even with government help.”
In response to a question as top whether or not the measures taken can solve the problems of the financial sector, he answered: “Ultimately, only the financial institutions themselves can solve their problems. In the current situation, there are no alternatives to bringing down the level of toxic assets, reducing indebtedness and strengthening the equity capital base. Government assistance makes this mission a little easier. However, it doesn’t take rocket science to predict that, nonetheless, not all banks will be able to survive this process undamaged; consolidation will continue in this sector.”
He also indicated that, despite the stakes in the banks and various industries that governments have acquired, he doesn’t assume they “intend to take up a long-term role in banking business. The key factor is therefore not likely to be temporary ownership of banking stocks, but the new supervisory regulations which will be imposed on the banking industry in the wake of the crisis.
“Generally speaking, the new regulations will shift the focus toward security and stability. This is likely to be at the expense of profits but in principle it is to be welcomed against the background of excesses in the past.
“However, top-down interventions in, for example, executive remuneration would be more problematic. Although corrections are also necessary here, putting a government cap on pay packages is certainly not the solution. It will only provoke ever more complex ways of getting round the regulations. This would be precisely the opposite of what is really necessary – clear and transparent rules for long-term participation in corporate success and failure.”
Source: Allianz
Topics Legislation Allianz
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