Madrid, April 20, 2023.

With the purpose of analyzing the new trends, challenges and opportunities of the housing market in Spain, Allianz Partners, along with other insurers and entities from the real estate sector, met at the 'Espacio Alquiler Conference' organized by Arrenta

Allianz Partners participated in this conference along with other industry experts in a debate whose purpose was to reveal the keys to the future of rental default insurance, which according to specialists will continue to grow driven by the increase in rental demand in our country. Among the points discussed during the meeting, the following stood out: the use of artificial intelligence (AI) to improve and automate tenant suitability studies and the opportunity to improve the product with new coverage and expansion of limits. In this sense, Álvaro Diez, Head of Allianz Markets at Allianz Partners Spain, began the debate by highlighting that there are common synergies between all the players in the real estate market and that rental default insurance should serve real estate agents to differentiate their offer from their competitors, expand its range of services and supplement its income now that the Housing Law could affect the collection of fees from tenants. In addition, he stressed that "both agents and insurance companies must offer solutions and products that help real estate companies in their daily management, without generating extra work, so that they continue to focus on their property management." There was also a discussion about the use of AI during the tenant 'scoring' process, compared to the traditional model that includes documentary verification of the economic capacity of the candidates. On this matter, the Allianz Partners expert indicated that, although advances in technology make it possible to simplify processes and are always welcome, it is necessary to offer security to the owner and thoroughly verify the viability of the tenant, stressing that "it is necessary to have the documentation , regardless of whether the suitability of the tenant is analyzed through complementary digital means". In this context, Diez added that "it is important to find a balance between automation and documentation review. That is, using technology without losing the human touch", revealing that the leading Insurance and Assistance company has invested in tools that allow the review of documentation in less time and detecting errors to avoid possible fraud. Insurers vs. other Customer-Centered Service Providers, during the conference the need to train and inform distributors and final customers of the differences between non-payment insurance and rent advance service solutions was put on the table, stating that these last products would not be guaranteed by any insurer and do not have the solvency that the sector guarantees. In this context, the discussion panel agreed that it is necessary for brokers and real estate agents to be well aware of the differences between both options , to transfer to the owners the risks that bet on this type of product entails. On this, the group of experts stressed that the post-pandemic has revealed the weakness of this business and some cases are already known that have left owners defenseless for the lack of liquidity to face payments. Therefore, non-payment insurance would be the only solution that would guarantee the collection of rents thanks to the policies that govern the insurance market, much more regulated even than banking. Álvaro Diez, Head of Allianz Markets at Allianz Partners Spain, concluded that "at Allianz Partners we work to create solutions that adapt to the needs of our clients. We want them to worry about what really matters, knowing that we are taking care of a well as important as your home. We know that the real estate sector changes, especially today, for this reason we maintain a permanent listening job, making use of technology and trusting our professionals, who help us to continue being the best ally of our clients". More information about Rental Default Insurance.

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