Allianz auto insurance: 100 years on the road

In 1970, the scene on German roads was carnage. Around 20,000 people died that year in collisions and accidents. In response, the German government introduced a 100 km/hour speed limit on country roads and, a year later, a maximum blood alcohol level of 0.8. The death toll has been on a decline ever since. For comparison, 3,214 people died in car crashes and traffic accidents in unified Germany in 2016, even though there are far more cars on the road.

In the early 1970s, the auto insurance industry also faced a crisis. The growing number of cars and accidents had thrown the equilibrium between income and expense out of kilter, leaving many automobile insurers running at a loss. For Allianz, both the number of accidents and the number and the amount of claims broke all records. Allianz lost 154 million marks in 1970 and total spending by all German insurers was 4.4 billion marks, of which 58 percent was for repair costs.

Allianz responded by creating a new unit within the Allianz Center for Technology (AZT) to research automotive damage. This institution was unique in Europe. The focus was on repair methods, research into the causes of damage, and traffic and operating safety, including researching safety measures such as the seatbelt and later the airbag and automatic immobilizer.

The unit quickly became an established partner for the auto industry and media for issues related to traffic safety. By 1974, recognition and adoption of the research into replacement parts and sectional repair by the AZT made vehicle repairs much less expensive. Tests and research the AZT has undertaken over the years include the influence of windshield design on the risk of injury, requirements for replacing seatbelts after accidents and development of child safety seats.