Reaching multicultural segments of the market and maintaining strong distribution relationships are the big challenges he faces as CEO of Allianz Life Insurance Co. of North America, Mark A. Zesbaugh said in an interview Monday.
The Minneapolis-based unit of Allianz AG in Munich is not interested in strategic acquisitions, Mr. Zesbaugh said, but rather is focusing on distribution alliances and looking to strengthen its products and services.
Allianz has made what it sees as a major effort to reach the Asian, African-American, and Hispanic communities, he said, and its method stretches beyond tailored marketing materials.
"It's really a holistic approach," Mr. Zesbaugh said, explaining that Allianz offers the same products and services to multicultural clients but delivers its message differently, for example, by having its field representatives engage in outreach campaigns to the targeted groups. "We provide a specific branding strategy," he said.
Allianz Life capped a 15-year relationship with its third-party administration services company - Delaware Valley Financial Services in Berwyn, Pa. - by buying it last year. Delaware Valley has served Allianz Life's variable products business since 1988.
Regarding competition in the variable annuity business, Mr. Zesbaugh said the industry will always be an arena in which "the winners will have creative products and services and strong distribution relationships."
Ensuring that variable annuity products are suitable for the customers to whom they are being pitched has emerged as another big issue for the industry, Mr. Zesbaugh said.
The Securities and Exchange Commission and the National Association of Securities Dealers released a report last month that among other things said that consumers have a poor understanding of some variable annuity products.
"Every insurer has a responsibility to make sure product sales are fit for clients," Mr. Zesbaugh said.
Allianz Life ranks 13th in overall variable annuity sales, he said.
As part of its effort to carry out its strategies, Allianz Life recently appointed four executives in the enterprise and individual life segments of its business.
Vince Vitiello was named the senior vice president of strategic business development and president of Allianz Life of New York. He reports directly to Mr. Zesbaugh.
Hayward L. Sawyer was hired to be an executive vice president and national sales manager at USAllianz Investor Services LLC, the insurer's variable annuity subsidiary. Lynn C. Tyson was appointed the president and chief marketing officer of USAllianz Securities Inc., the company's broker-deal unit. And Jay J. Melquist was hired to be a senior vice president of the individual insurance products division.
Regarding these hirings and appointments, Mr. Zesbaugh said that each executive will help the business grow. "We're very optimistic about our growth potential," he said.
