Heathrow Airport Proposal 2022
Steve & Claire,
I am committed to continuing our long-term relationship with Heathrow, encouraging my team to continue with new ways of thinking and providing solutions for your evolving needs. I want the opportunity to thank you for considering us again, and I very much hope we continue the journey together.
AGCS has a reputation built upon technical underwriting ability, as well as claims, risk consulting and client services. We understand the business of risk, and more importantly – we understand your risk. This document is giving you an update on AGCS today, detailing our property quotation and I look forward to discussing this with you in more detail. Please also note we are working with Marsh on a liability proposition which you will hear more from us shortly.
Rebecca Stewart
Key Account Manager
About Allianz
Allianz Group at a glance
- With around 150,000 employees worldwide, the Allianz Group serves over 100 mn customers in more than 70 countries.
- On the insurance side, Allianz is the market leader in the German market and has a strong international presence.
- In fiscal year 2020 the Allianz Group achieved total revenues of approximately 140 bn euros.
- Allianz is one of the world‘s largest asset managers, with third-party assets of 1,712 bn euros under management at year end 2019.
Did you know?
Allianz is the Worldwide Insurance Partner of the Olympic & Paralympic Movements from 2021-2028
Allianz insures major Hollywood and Bollywood movies, including all 24 James Bond productions
Allianz supports sustainable motor sports by being a partner of the fully electric car racing Formula E Championship
Allianz offers financial solutions to more than 49 million emerging consumers in Africa, Asia and Latin America
Allianz is the leading specialist in space insurance and celebrated its 100th birthday as aviation insurer in 2015
Allianz insured the last three buildings to hold the title of “world’s tallest”: Petronas Towers, Taipei 101 & Burj Khalifa
the Allianz Center for Technology has conducted thousands of crash test since 1980 to improve road safety
Allianz was one of the insurers of the Titanic
Allianz Results
Allianz Group 12M 2022
AGCS 12M 2022
Allianz Commercial Commentary
Allianz Ratings
zaAAA local
(October 2022)
Environmental, Social and Governance (ESG)
Background
- ESG Board composed of Allianz SE Board Members responsible for the Group ESG strategy
- ESG Center of Competence (CoC) in Allianz Global Corporate & Specialty established in January 2014, responsible for Allianz‘ P/C business globally
- ESG is embedded in the global governance framework via Standards & Policies and core insurance processes (Underwriting, Risk Management) supported by a dedicated ESG desk (as part of the ESG CoC) and Communication
1.5°C Aligned Investment Portfolio
Proprietary investment portfolio committed to net-zero emissions by 2050, in line with 1.5°C (UN AOA, SBTi)
Coal Exit for Insurance and Investments
Bringing coal exposure of insurance and investment lines of business to 0% by 2040 latest
Renewable Energy in our Operations
Commitment to source 100% renewable electricity by 2023, reduction of operational emissions along 1.5°C pathway.
Our pledge to you
- Partnership: A trusted, financially strong, stable partner delivering value and expertise to you and your clients, long term.
- Excellence: A commitment to put our clients and brokers first through true customer centricity.
- Expertise: Deep expertise and insights to create the best client solutions, globally and locally, with 100% integrity.
- Results: Helping clients maximise value by unlocking the best of Allianz, from insurance to asset management.
- Industry focus: Global industry solutions with people who understand your business and bring you the best of the Allianz world.
- Innovation: Working together towards key, relevant goals, including ESG, Green Solutions and ART.
- Data and Analytics: Pinpoint partners, maximising data and relationships for the best possible client solutions.
- Quality and Compliance: Contract specialised policies and globally-compliant international insurance solutions.
- Level Playing Field: Working with our brokers in equal partnership, prioritising constant communication.
- Thought Leadership: Consistently evaluating existing and emerging risks, loss trends and sharing knowledge.
What makes us different?
We reach beyond traditional solutions, to address your unique risks.
Heathrow Team
We believe in having an open dialogue with you and Marsh to find the right solution for your every need. We commit to continue to build our robust and transparent tripartite relationship and will deliver on our promise.
Your dedicated Key Account Manager (KAM), Rebecca Stewart, will ensure effective service delivery to Heathrow via a single point of access to Allianz resources. She will ensure an integrated approach, from underwriting to claims to risk engineering.
Rebecca will oversee the following:
- Coordination of the Allianz service via the KAM but in close liaison with all of the client team – this provides a structured approach to ensuring client feedback which helps ensure rapid responses to any issues which may arise
- Monitoring all aspects of the Allianz service in respect of the client and taking action to resolve any issues without delay
- Arranging account review meetings with a structured agenda to cover all aspects of the AGCS and Heathrow relationship, including mid-term review, pre-renewal and post-renewal reviews
- Representing the client’s interests within Allianz to ensure that service improvements are made where necessary and delivering access to the wider resources of Allianz through one person – as and when required
- The KAM is responsible for ensuring that they develop a close understanding of the client’s business environment
- Liaison with client/broker and AGCS claims on any major losses
As stated below we would like to continue the regular engagement with Heathrow, both formally and non-formally. We suggest we do the following:
- We encourage quarterly stewardship meetings with Heathrow and Marsh. In addition to standing items (for example – risk consulting, claims, etc.), we will provide updates on matters such as emerging risks, new solutions and support evolution. We would like to have at least two dedicated risk consulting stewardship meetings per year
- Ad Hoc meetings - we will bring the relevant experts and respond in real time to urgent requests
- C Suite level engagement - customer centricity is one of the key pillars underpinning the Allianz Groups
- Regularly we invite our clients to meet with subject matter experts to learn about insurance and risk management developments, new products and other topics
- Claims scenario testing is an opportunity to meet and discuss potential stress points to ensure the wording response is as expected.
- Regular engagement on a non-formal basis too!
We excel in underwriting
Our profound technical insurance expertise and industry knowledge allow us to provide you with solutions tailored to your needs.
In underwriting your risks, we stay true to our principles. It ensures we take those vital core competencies which you rely upon further.
The better we are at truly understanding complex risks, the better we can serve you. From harnessing insights from data, developing new forward-looking pricing tools or creating a harmonised global product framework, to practice groups leveraging shared expertise on specific risks or sectors, the goal is to provide market-leading solutions to you.
AGCS Claims at a glance
Insurance is truly a people business.
Our claims team is acting at the forefront of AGCS to ensure timely communication, transparency, outstanding service delivery and swift resolution.
17 Claims Global Practice Groups with the top experts from our global organisation ensure the settlement of large complex claims, e.g. for cyber, business interruption or class actions.
650+ experts
in worldwide locations focusing exclusively on industrial, corporate and specialty claims
10+ years
average claims adjusting experience of our handlers
165,000+
claims handled per year
€4bn+
average annual claims payments
Why Allianz Risk Consulting?
- Global Network - We are a global network of over 100 property Engineers with coverage in all territories
- Flexibility of Approach - We are a truly consultative engineering service, offering innovative solutions to our clients often complex problems
- Flexibility of Codes - Engineering programmes delivered to NFPA codes, local codes or clients individual – loss prevention standards
- Sector Expertise - Vast global experience in numerous industries built up over many years
- Successful Transition - Many examples of successful client transitions to ARC from other insurers and loss control providers
- Strategic advice & solutions - ARC play a proactive client partnership role in focusing the programme and working with stakeholders to share knowledge and experience to all parties’ mutual benefit
- Long term relationship - ARC desire a long term relationship built on mutual trust and support. We have many examples of successful partnerships with our clients embedded over many years. References are available where required
- Risk management services - A variety of risk management services are available to be tailored to suit client requirements
- Quality and Consistency - Property engineers are Allianz certified and comply with company practices and procedures
Allianz Risk Consulting Property offers our clients comprehensive risk engineering and the key services include:
- Site surveys for property, business interruption and construction
- Reviews of loss control management programs
- Business Interruption analysis
- Business Continuity Management
- Technical training and knowledge transfer
- Plan & project reviews
- Testing & commissioning of fire protection systems
- Fire protection impairment management
- Loss investigation surveys
Specialist Risk Resources and Services
The Account Engineer will explain, guide and advise on which specialist resources will compliment and add value to your existing loss prevention programme. We recognise that one size will not fit all and our goal is to work in partnership with you to maximise the improvement and impact on your risk profile of our tailored risk solutions to support your business objectives.
Examples of risk management tools available include:
- Using the AGCSonline, our clients can, amongst other things, access information regarding their loss control programmes in real time, download reports, update recommendations & notify us of impairments to fire systems
- Allianz AlertZ will automatically send out risk information and newsletters featuring risk bulletins, technical documents, lessons learned and other risk advice and publications
- Cyber risk has proven to be of increasing concern to our client’s and whilst hacking of IT for data and finance grab the headlines, there are exposures to IT systems running production equipment. ARC has employed a Cyber Risk Consultant to assist clients who may have concerns in this area
- Whilst the Account Engineering function will offer an overview of the business interruption potential at account level, and the effects on any linked locations, a more in depth study can be undertaken looking at the policies and procedures in place for Supply Chain Risk Management applying technics such as the European Foundation for Quality Management
- ARCFlex a more focussed client centric approach to risk consulting eliminating the need for repeat survey work
- The Allianz Property Risk Management Charter aids client’s to embed prudent Human Element practices and procedures throughout their organisation
Allianz Risk Consulting: Our Plan of Action
Heathrow Survey Programme
History
AGCS have been Heathrow’s Lead market since 2008 and during this time, an extensive Risk Engineering programme has been in place,
We have conducted visits on all the following:
- Terminal 1 – Six visits
- Terminal 2 – One visit
- Terminal 3 – Seven visits
- Terminal 4 – Seven visits
- Terminal 5 – Seven visits
- Control tower – One visit
This has resulted in:
- Significant risk improvement with the completion of over 130 recommendations.
- Consistent improvement in risk quality achieving an Above Standard Risk Rating.
- Detailed Business Interruption study completed in 2016 with updates in later years incorporating detailed discussions with all relevant parties, especially to understand the Insurance Market, loss estimate definitions, potential loss scenarios, mitigations plans, and priority loss scenario assessments, to validate Business Interruption MFL and EML scenarios.
- Control tower risk review undertaken in 2019, again resulting in an Above Standard risk rating.
- Allianz Risk Consulting have also been involved in numerous projects and targeted deep dives including for example:
– Emergency works on the fire main and fire protection between 2018 – 2021.
– Catering and baggage handling operations deep dives (T3IB &WIB)
– Sprinkler and fire detection projects, amendments and upgrades including:
· TTS maintenance depot – sprinkler amendments and acoustic panels
· Heathrow Rail – replacement fire alarm system design for the HAL rail estate
– Early bag store design and protection advice to achieve excellent levels of protection.
– Tunnel water mist project, with ongoing interaction with all parties, review of plans and documents, plus discussion and update reports.
– Involvement and engagement with Heathrow Fire Safety Leadership Team (FSLT) to understand and advise on ongoing fire safety projects.
– Reviews of critical fire strategy practices, procedures and supporting documentation.
– Shadowing of ‘facility inspector’ tour
Moving forward: Our 3-year plan
The below plan is to be discussed and agreed by Heathrow and Marsh but this is what we propose for the next 3 years. We look forward to discussing this with you in more detail.
As part of the evolution of Allianz Risk Consulting we will be looking to enhance the survey preparation similar to the recent baggage survey (where we did a virtual premeeting), to allow all parties to fully appreciate what we are looking to achieve.
- Review of objective and benefits.
- Request for relevant information and documentation with subsequent discussion to aid targeted survey and data collection / validation.
- Risk Survey Exit Meeting allowing all parties to discuss, validate findings and raise any additional issues.
This allows survey participants to be fully prepared, focussed and aware of the survey objectives, final conclusions and value of the visit.
The credibility of Allianz Risk Consulting is second to none in the insurance market, and this is evidenced by the trust that follow line insurance markets have always, and continue to demonstrate in the support of the Allianz risk engineering lead and management of the Heathrow Account.
Year 1
- Terminal visit to update and understand any changes, especially revenue streams and those made as a consequence of the pandemic i.e.change of airlines, click and collect shopping, other retail changes etc. Terminal and date of visit to be agreed following discussion with client to ensure that we are aligned to clients priorities but initial suggestion is Q1.
- Storage survey at Colnbrook logistics centre to investigate and mitigate the flammable liquid risk exposure? Suggested visit in Q1
- Fuel Farm full survey update and review. There are 2 fuel farms (south side of T4 cargo and Perry Oaks tank farm 300m from T5C). This could include a deep dive specific to the fuel farms undertaken by a ‘Petrochemical’ engineer if required. Suggested visit in Q2.
- Energy Centre T2 and T5, full survey update and review. Suggested visit in Q3.
- Stewardship meetings to be held in January and August to review –
– Survey activities – progress to date on survey visits.
– Recommendation tracking – updates on the current recommendation status.
– Project updates – update on ongoing project reviews
– Future plans – recap on what is planned for the future.
Year 2
- Alternative Terminal visit to ensure the overall risk review programme remains live. Suggested visit in Q1.
- Deep dive into identifying key / critical control rooms together with reviewing protection standards commensurate with the risk exposure. For example, the baggage survey at T3 highlighted that there is no detection/ protection for grouped cables in underfloor voids in control rooms and this could be a common previously unrecognised risk for numerous control rooms and the business? Suggested visit in Q2.
- Review of Rail areas as these critical facilities have not been fully reviewed before. Suggested visit in Q3.
- Stewardship meetings as per year 1.
Year 3
- Alternative Terminal visit as per Year 2. Suggested visit in Q1.
- Deep dive fire water supply and fire pump review and assessment which are critical single points of failure for the Heathrow site? Suggested visit in Q2.
- Review the sums insured and loss exposure for the Cargo area, and undertake a risk survey depending on the predicted financial risk exposures? Suggested visit in Q3.
- Stewardship meetings as per year 1.
We will continue to provide ongoing project support (examples below) to support and maintain the high levels of risk protection throughout the complex site operations.
- Tunnel water mist system
- Water main works
- Storage of flammable liquids (as above)
- AFD changes
Summary
Year 1
Year 2
Year 3
Would this be useful?
Steve, as discussed we have produced a mock version of a crib sheet that our risk consultants can take to site visits going forward. It will have the agenda for the day, explain who we are, why are we here etc. This can all be tailored for your requirements however we have produced a template which we can develop further with you if you think this would be useful.
DOWNLOAD documentProperty Damage and Business Interruption Quotation
DOWNLOAD QUOTATIONWe hope to continue as your partner of choice and look forward to discussing our proposal with you. Thank you.
