In Person: Allianz Insurance’s chief information officer, Jacob Abboud

On being a technological company, what it has changed for brokers and customers as well as what is coming next.

It appears then that Allianz has addressed one of issues – namely trying to be as agile as a start-up.

However, historically insurers have struggled for a second reason.

Namely, that large corporates play ping-pong with great ideas due to lack of management buy-in.

The interminable back and forth means that radical and indeed great ideas don’t make it through proof of concept phase.

In some ways it is understandable. New technology by its very nature does not come with certainty of income and reputation. Leaders have competing requirements not to mention the warm breath of shareholders and investors breathing down their necks.

Support and tension
Time then for that third hat. As part of the UK management board does he get support at the top level and is a positive culture echoed throughout the organisation in different departments?

Abboud maintains that the backing is consistent but demanding throughout the business.

“With innovation you don’t know if it is going to work or not, you have to test and learn.”

Looking at the market more widely he admits: “There is a tension … in an organisation with a congested change portfolio and constrained budgets.”

Honing in on Allianz he highlights the provider has an emerging technology team that is ring-fenced and not restricted to a specific agenda.

“It has its own budget. They don’t go and spend loads of money. It is what we call running proof of value.”

Examples range from analysing InsurTech ideas through to working out how use of robotics could benefit the company.

“At that point it is a lot easier to sell because you have something tested that you can sell by building the business case.”

It is a challenge to some extent. We would be competing with start-ups and private equity. Talent is in demand from everybody

Then there is the issue of how to find the right IT people to start with.

Not many people wake up and decide they want to pursue a career in insurance.

In the IT landscape the situation is surely more intense. New technology in particular often means that only those that have been in a position to experience total immersion in the subject matter are of any genuine use – and they rarely dream of working for brokers or insurers.

The mind-set that produces great technology is not necessarily the mind-set that produces great monthly board reports. Why would anyone with the skills not be attracted ‘sexier’ industries?

“It is a challenge to some extent,” Abboud concedes.

“We would be competing with start-ups and private equity. Talent is in demand from everybody.”

Factories and stables
He parries with the idea that Allianz can provide the right place because it spends heavily on IT, is well capitalised to invest for the long term and offers global opportunities as well as ongoing training not least on its graduate programme.

“We have tried to create the right environment to attract talent into our organisation,” he further explains noting it has, appropriately enough, a “stable” for the digitalisation programme of animal-related insurance and a “factory”.

They have both been designed to create the “environment that motivates” IT people, much like other insurers such as Aviva’s investment in its “garage” in Shoreditch.

“The motivation and excitement in the place is palpable,” says Abboud.

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