‘We cannot afford the social systems we have.’ Allianz CEO Oliver Bäte’s uncomfortable truths
As Monocle Radio broadcasts from Milan for the 2026 Olympic Winter Games, Tyler Brûlé meets Allianz CEO Oliver Bäte for a candid discussion on global sport, corporate responsibility, innovation and Europe’s future.
Speaking from Allianz Tower in Milan, Oliver Bäte reflects on what it means for Allianz to be a worldwide Olympic partner in today’s political context. In conversation with Monocle’s chairman, Tyler Brûlé, the Allianz CEO shares his thoughts ranging from sport’s ability to unite and motivate to how he views society’s approach to work. The discussion offers a frank view on leadership, responsibility and the pressures facing governments and businesses alike.
Listen to the full conversation on The Chiefs from Monocle Radio. The following transcript has been edited for length and clarity.
What does it mean for Allianz to support the Olympics at this moment?
The Olympic Movement represents so much. When there is such chaos in the world, finding two weeks to focus on something different is important. That’s the power of sport – people from all over the world vie to do the impossible and beat the best. It’s an enormous [source of motivation] for everyone watching, with more than a billion people expected to tune in. Finally, it is great encouragement for our customer base and employees. People are ecstatic about participating in the torch relays and volunteering at the Games. It’s a positive incentive for a world that needs it.
Is there a sense of rallying at Allianz because [employees] think, ‘I see my company’s name with the Olympic rings’?
There are only 11 companies that are allowed to carry the rings. Being in the inner circle, we see what we can add and how we can bolster European ingenuity. After all, we’re not just providing insurance. For example, we’re helping the bobsledding association to create safer bobsleds for athletes. It’s about being part of something exceptional, pushing the boundaries and innovating.
Looking ahead to the Munich Security Conference [this month], let’s talk about Brand Munich. Where are we? Does Brand Germany understand its power?
We have a very successful ecosystem in Munich with an amazing airport and great, technical universities. When people think about Germany and what’s good about the country, they often think of Bavaria. It remains a real innovation centre and functions extremely well. Brand Munich is very strong. Take the Security Conference: if you ask people what destination is having serious conversations about where the world is going, few say Davos – and more answer Munich. We have amazing assets but we need to use them.
Everyone says that Germany is coming back. What’s your take?
We have been very fortunate at Allianz. The forecasts from the market are very good and we have something that gives me hope every day, which is the trust that customers have in the company. It has never been higher in our 136 years. In terms of Germany, there are good companies [that are] doing really well – just look at Siemens. It is overshadowed by the problems that we have in sectors that have not invested properly in the future or were mismanaged by European regulation. We still have debates on working less rather than more, even though we know that we cannot afford the [current] health care and the social systems. Europe has [about] 5 per cent of the global population but [approximately] 50 per cent of the social spending. It’s unaffordable. The problem is that politicians do not want to address this because they say that they will get booted out of office. People do not want to be told to work more – but someone has to do it.
How much of a role can the private sector have on influencing the state of Bavaria as much as Berlin?
The problem is in the public. The vast majority of our publicised opinions [come from] special-interest people that dominate the debate. Rage [drives] the clicks and therefore a lot of my peers are very careful to go into the public. I don’t think it’s a sustainable model. We just need to call a spade a spade and say, ‘Guys, this is what we need.’
We’re talking about human capital – you still have to deliver customer service.
Today, if you wanted to make a call to a person, you need to have a lot of contextual know-how to respond to a question [that a machine couldn’t provide]. In the next few years, we’ll have [machine] agents who not only talk agent to agent but can talk to humans in a highly professional way and make fewer errors than a human would. We are trying to free up the time of qualified humans with the help of machines that actually can answer the question that we never get to answering.
Let’s take a look at the host of the Games. What is Allianz’s relationship to Italy?
After Germany, Italy is our second most important market. We have the strongest brand here, even stronger than the local ones. We see it trying to help the country. We also see the challenges. If you think more about distributing wealth than creating it, you end up in a problem eventually. Reputation and success were solidified in those beautiful years when everyone wanted to drive an Audi in Lombardy – there was a trust in Germany at that point.
Finally, what’s your favourite sport to watch during the Winter Games?
Bobsledding. I just did it last year. I now know what it means to go down something at 130km/h with three plus Gs on your neck. It’s quite stunning what these people have to do well.
