New York Chapter
PRMIA NY Risk Lunch with Allianz CRO Tom Wilson Friday, October 23rd
On Friday October 23rd, PRMIA hosted a rooftop roundtable lunch at GQR’s New York headquarters for 25 members with Tom Wilson, CRO of Allianz. It was a crisp sunny afternoon and a great setting for a robust discussion about risk, capital and value. Tom opened with his observation that financial institutions can only achieve value creation by diligent capital management. This is the subject of his recently-published book, Value and Capital Management (Wiley, 2015). Tom stressed the importance of establishing a proper framework for capital management as a means to steer a company towards value-enhancing actions.
Tom touched on some of the key risks that he sees in his role at Allianz. One of the major difficulties facing the life insurance business is the challenge posed by low investment returns. Policyholders are facing lower guarantees compared with products offered a few years ago. At the same time, life insurers’ margins are being squeezed since some investment returns are below the guaranteed rates. Tom expressed the view that this is unsustainable and could lead to a shift in the types of life insurance and annuity products offered in the market.