Allianz Announces Power of Unity Strategy

The word from Allianz, who are issuing a plea for unity, after voters appear to have voted the wrong way. Or the right way. Depends on your point of view really. Here’s the word;

Following a year where more than 70 nations – home to nearly half the world’s people – have been called to the polls, Allianz today announced a multidisciplinary program, “Power of Unity,” to counter the erosion of trust in societal institutions and strengthen confidence in a better economic future.

The program is founded not only on publicly observable trends, but also on Allianz’s insights. Allianz Research’s fourth “Social Resilience Index 2024” cites that polarization and social unrest have increased in many countries, and with a sizable economic cost. The strength of democratic institutions, social cohesion, and trust in functioning markets and economies are being affected by increased partisanship.

Further, in an Allianz proprietary survey conducted across six of its core markets, 69% of Allianz’s customers, investors, and its other stakeholders expressed a lack of confidence in the ability of political leadership to work together to solve problems.

“A more united world is a more prosperous world. Polarization slows economic growth and threatens our customers’ sense of security and optimism,” said Oliver Bäte, Chief Executive Officer of Allianz SE. “To secure their future, Allianz will combine forces with willing partners for action, demonstrating that leaders can work successfully together to solve the problems that matter most to people.”

Allianz is launching the “Power of Unity” program to help individuals and organizations to engage more constructively in the face of growing polarization worldwide. Through research, thought leadership, and learning programs and events, the program seeks to promote dialogue and respectful debate, bridge divides by encouraging understanding, and restore trust in societal institutions.

RESEARCH: The “Power of Unity” program leads with research: The Allianz Social Resilience Index 2024 identifies underlying strengths, weaknesses and perceptions in the political, institutional and social frameworks of 184 countries worldwide and serves to quantify the impact of various socio-economic factors on societies, from the immediate costs of social unrest to how it stifles global growth and consumer confidence.

The 2024 super electoral year has revealed fragilities in many countries: all incumbent parties in developed countries lost vote share (a first since World War II), and the ideological center of gravity has shifted to the right in 16 European countries and the United States.

Polarization has increased in many countries and comes with a sizable economic cost. Political affiliation plays an important role in consumer behavior as observed in past events of heightened political uncertainty across democracies. A -10% and -20% one-period consumer confidence shock would decrease consumption in the United States by USD105bn (USD304 per capita) and USD215bn (USD622 per capita) over the next four years. In Europe, the same shocks would decrease consumption by USD52bn (USD147 per capita) and USD103bn (USD296 per capita), the effect being more subdued as consumer confidence still has not fully bounced back from the effects of the pandemic and geopolitical tensions.

A summary of the research and the full report are available here.