German bancassurers decide their strategy

Two events are currently occupying the minds of most German insurance executives, and they are closely related: the takeover of Dresdner Bank by Allianz and the final passage through parliament of the bill changing Germany’s pension system. The latter reform introduces an element of state-induced private retirement savings. It will be introduced in steps and means a market of more than €27bn by 2008. Insurers hope they can get a 70% slice of that business.