While digitization has redefined most aspects of financial technology, Allianz PNB Life chief executive Joseph Gross believes that maintaining a few analog processes keeps clients engaged and informed.
Physical interaction with clients remains a core value practiced at Allianz PNB, he says.
“Life insurance and health insurance are still advice-related and heavily dependent on your advisor – be it your bank or your agency,” Gross says.
Branding by digitalization is important as the world begins to embrace fintech, but human intervention is a service that will remain premium and basic.
Gross is a fintech guy who’s spent a good two decades of his professional life at Allianz. He has always held top management positions, wherever his career led him.
Coming to the Philippines eight months ago, Gross says Allianz, one of the largest insurers in the world, pursues innovation.
“We’re offering what other insurance companies are offering. We’re actually doing very old core values we believe delivers better for long-lasting customer relationships. It is literally nothing radical. What is radical now is how we continuously innovate to meet distribution needs,” he says.
Allianz PNB set out to continue providing financial inclusivity to the bigger customer base, a better value proposition for the working class, individuals and families.
It achieved a phenomenal growth since its creation in 2016. With global developments eroding value proposition for the single premium category, it has to repackaged its products where clients can find more assurances and better protection.
“Now, what we’ve got to do is to accept it, because the low-interest rate environment is not going to come back in the next foreseeable future and competing for yield will not be a good one, either,” Gross says.
Allianz PNB is innovating certain products that should make up for low yields and increase their distribution. Tying up regular premium and regular products to medical protection is an existing value proposition that the insurance partnership plans to spruce up.
“Every competition offers a product on critical illness. There’s no differentiation or unique value proposition there. This is where our innovation comes in,” Gross says.
Allianz PNB aims to break barriers of purchasing insurance products by making them affordable, yet at the same time offer products that meet the needs of the high-income groups.
Synergies
Stepping-up its game, Allianz PNB widened it client base by signing a 14-year distribution agreement with HSBC Wealth.
The exclusive distribution agreement with HSBC seeks to offer new and innovative produces that touch on the sensitivities of the upper segment.
The agreement, barely two months in effect, aims to bring HSBC customers into the fold with products that address the upper segment’s specific needs.
Gross says the interests of PNB and HSBC complement each other even as the demographic profile of their clients are dissimilar.
“HSBC is focused on affluent, ultra-high net worth clients. That is their business model. PNB is primarily focused on retail banking, mass banking. They’re ubiquitous across the nation. They are rurally distributed, so there’s no massive overlap or conflict of interest, or distribution cannibalization,” he says.
Simple joys
A man of frugal ways, Gross is not the typical business bigwig addicted to swinging a golf club once a week, neither does he luxuriate in fine dining.
His addiction lies elsewhere—his family who brings him of joy and his strong affinity to fitness. Cooking for the family is a habit he intends to keep. Yoga keeps him at his best, as he indulges in it whenever his spare time allows him.
He recently spent a long weekend in Anilao, Batangas—the first time he got to enjoy an out-of-town trip with his wife who just arrived from Germany.
While there are very beautiful destinations in the Philippines, he finds local travel a bit expensive.
“It doesn’t matter. As long as I’m with my family, actually I’m pretty happy. What I enjoy doing with my family is cooking. So I have a lot of fun when I can cook something for my family and then we have peace and quiet to eat together. And in our family, it’s forbidden to put the phone on the table while dining. That’s a strict rule,” Gross says.
He admits having a craving for real, spicy, authentic Indian dishes in the Philippines, which he found, is rare in Metro Manila.
His twin daughters are coming over for the holidays. Both are now independent young women who are starting to carve a niche in their chosen career paths.
“We spend time at home during Christmas. If there are plans for a bit of travel, that comes right after Christmas celebration,” he says.