Allianz Retail has signed a five year deal worth an estimated £150 million to provide insurance products to BMW customers in the UK. The insurance company will also be offering free seven-day car insurance through approved BMW dealerships, which makes Allianz the primary insurer of both Mini and BMW customers in the country, but also strengthens a long-running relationship between it and mainland Europe’s BMW division.
Two years ago, Allianz succeeded St Andrew’s Insurance, a Lloyds insurer, in their bid to offer both shortfall cover and income protection to customers of BMW. Shortly thereafter Allianz began to provide several other related insurance products, such as the BMW Motorrad Insurance, emergency service, warranty, and tyre insurance.
Under the new deal, Allianz will be providing branded claims capability, service, and sales for the new business from this month, while travel and home will also be added later in 2011. Allianz Retail manager, Jon Dye, remarked that the fact that BMW has chosen to expand their working relationship with Allianz highlights how the insurer has ‘delivered the goods’ to the car manufacturer.
While the travel and home books are relatively modest, Mr Dye expressed confidence that Allianz can easily grow BMW’s motor book from its current 40,000 policy level. He also said that the new deal is roughly equivalent in size as the insurer’s partnership with fellow car manufacturer Volkswagen.
BMW Financial Services insurance and banking sales development manager, Leanne Thames, commented on the new deal, remarking that the recent announcement is the natural fruits of a strategically formulated project specially designed for the consolidation of a range of BMW insurance offerings from multiple car insurance companies down to a single provider.