German insurer Allianz announced yesterday that it is partnering up on a joint venture with Spanish bank BBVA. The news from the BBVA website states that 277m euros has been invested by Allianz, with a possible extra 100m if particular goals are reached.
BBVA Seguros already sells insurance and has GWP of around 300m euros, according to the bank’s website. They also say they are looking to offer a wider range of non-life insurance products to its customers and chose Allianz as an innovative player in the market. Allianz will have a 50 percent share of the joint venture, plus one share and the JV agreement lasts for 15 years. Read the release in full here.
BBVA has around 2600 branches in Spain, but of course the real opportunity lies in online sales and marketing. BBVA already has a strong healthcare insurance offer and the advances in technology regarding virtual GPs and specialists, matched to the public’s increased fears of contagious disease, should see a spike in demand on that front.
Travel cover and repatriation insurance for students and employees working outside the country, are two more areas where BBVA can fine tune their offer to suit the new normal.
After Corona, Spain is going to see a downturn for at least one year in the travel/tourism sector, which according to some analysts accounts for around 10 percent of the country’s entire GDP. It will be interesting to see how the two companies can offer new insurance products that can win over consumers, many of whom will be feeling the financial strain in 2021 and beyond.