Hello Martin, congratulations on your 45th anniversary! How does it feel to reach this significant milestone?

Thank you very much for your congratulations. It feels very good and it is also a reason to be proud. When I think back to our summer party for the staff on the houseboat “Albatros,” it was a fitting, atmospheric event to celebrate in style. The event is still inspiring us in this anniversary year.

45 years is a really long time, during which a lot has been achieved. What moments have been particularly memorable for you since you became managing director of Albatros in 2018?

During my time as managing director, the coronavirus pandemic had a particularly significant impact. This was especially true in terms of the challenges faced by our customers, whom we supported with premium discounts or premium deferrals. This also had a significant impact on our business results, which suffered noticeably as a result, but supporting our customers was important, and in doing so, we also demonstrated that we are committed to building long-term relationships. Both with our customers and with our partners on the insurance side. A concrete example from this period is the “Bring-me-Home Insurance” policy that we developed for the Lufthansa Group (LHG) at the time, thereby doing our part to revive Lufthansa's business. This was new to the German market and generated a lot of media coverage. Another defining moment for me in recent years was the launch of the “Origami” IT project. The first risk data query and the excitement of wondering whether everything would go as planned was thrilling. Today I know that we are on the right track.

The structure and organization of Albatros is virtually unique. How exactly is the company structured?

It is helpful to first recall the history of Albatros. Albatros was formed from Delvag to cover Delvag's reinsurance needs on the one hand, but also to serve the insurance needs of Delvag's customers in lines of business not operated by Delvag on the other. In addition, there were more and more requests from Lufthansa employees for private insurance, and that is exactly what Albatros is today. The corporate customer segment and pension management are still Albatros' core business areas today. Since our founding, we have grown far beyond the Lufthansa Group in terms of our corporate customers in the airline sector and now serve one of the largest airline purchasing groups in the world—in the annual renewal of their insurance coverage, in daily service, and also in advising them on the further development of their risk management. In pension management, we not only arrange insurance coverage for our customers, but also manage two of our own pension funds exclusively for them: the Kabine pension fund and the Albatros support fund. In addition, we broker private insurance policies, financing, and investment opportunities for Lufthansa employees and other companies, which is now handled by Albatros Financial Solutions GmbH, a subsidiary of Albatros.

Albatros has long established itself as a leading specialist insurance broker. What is the recipe for success, apart from its unique structure?

One key reason is our proximity to our customers' businesses. This proximity gives us extremely good insight into our customers' processes and challenges. It makes us credible and authentic as a sparring partner and also ensures the trust of our third-party customers, who see us as an equal partner. We use this as the basis for deep and sustainable personal customer relationships, which then last for a very long time. In pension management, we are not only a reliable sparring partner for our customers, but also for our collective bargaining partners, such as the various unions in the aviation industry.

How has the strategy in the corporate brokerage business developed over the years, and what current trends do you see?

There has been a trend toward consolidation in this area for years. Large players are merging with others and growing. Medium-sized players are being bought up by consolidators, and small brokers are increasingly withdrawing from the market. In Germany, there are still comparatively many brokers, but here too, the trend is toward consolidation. The mergers mean that our competitors are increasingly able to offer digital solutions. This is in line with the trend of growing customer demand for digital products. In the corporate customer segment, this trend is still more subdued than in the private customer segment, but it is also foreseeable. We definitely have to take this development into account in our strategy. That is why we are already working intensively on expanding our digital offering in all business areas.

What role does the Lufthansa Group play in the strategy and how do customers benefit from this?

We are responsible for developing our corporate strategy ourselves, as we know the markets and can respond to challenges accordingly. Of course, we need the approval of our owner for major investment decisions, for example. Overall, we consider Lufthansa to be both an owner and a customer in our strategy. We continuously evaluate what needs exist and how we can incorporate the Lufthansa Group's strategy into our considerations and support it. Further developing insurance management in the Lufthansa Group together with colleagues from the relevant Group functions is an important component of this.

What is the current competitive landscape in the industry? Does it vary depending on the market segment?

In general, competition has intensified in recent years. On the one hand, this is due to the consolidation of some competitors into larger players and, on the other hand—especially in the industrial business—to the entry of international competitors into the German market. Overall, the aviation insurance market is not currently following any clear trend, which tends to support competition for our customers. We have to face up to this. Another factor influencing the occupational pension segment is current legislative developments. These may give rise to new pension providers or protection mechanisms, which in turn will have a significant impact on competition and market structures. In the private customer business, consolidation and increased competitive pressure are also an issue, with competition being further driven by online platforms.

What measures are being taken to stand out from the increasingly fierce competition and remain the industry leader?

In addition to the digital offerings we are investing in, we are primarily working on expanding our database. This will give us even better insight into our customers' needs, enabling us to expand our role as a holistic risk manager and respond flexibly to new requirements. We are also continuing to develop our services, such as billing tools and insurance certificates, to ensure and improve our professional offering in the future. We continue to build on the personal cultivation of trusting customer relationships. On the one hand, through our daily work with our customers and, on the other hand, through formats such as Aviation Insurance Day, Industry Insurance Day, and the Crisis Management Workshop.

Are there any new markets or business areas that could become interesting in the future?

Our market in corporate banking is clearly the airline and aviation-related market, and we want to continue to consolidate our position there. We also want to continue to attract new customers in the future, especially where we see good opportunities through LHG or existing customers. New legislation could also open up new business areas in pension management. It is important that we closely monitor such developments and adapt quickly to new circumstances. In addition, we will continue to seize opportunities as they arise. There is certainly still potential in the aviation-related market that we have not yet fully exploited. We want to work even harder on this. New legislation could also open up new business areas, opportunities, and risks in pension management. It is important that we closely monitor such developments and adapt quickly to new circumstances.

What are your long-term goals and visions for Albatros?

My vision is to make Albatros the leading boutique broker in the airline industry. I want to achieve this by offering a comprehensive range of services as a risk manager for our customers, consisting of holistic insurance solutions. We will achieve this through flexibility, state-of-the-art technology, customized product solutions, and personal service—I am certain of that.

Finally, what are your wishes for Albatros' 100th birthday?

Quite clearly, that Albatros will be just as open, youthful, and agile in 2080 as it is now on its 45th birthday.

Thank you very much for the interview.
 

Interview: Nicholas Gorny, Corporate Communications