Allianz and Western Union have struck a Memorandum of Understanding (MOU) to develop, design and distribute insurance products in several countries around the world.

As per the terms of the agreement, both firms will concentrate on growing demand of insurance products beyond developed markets and assist each other in distribution and co-marketing, including premium payments for Allianz customers through Western Union.

Allianz CEO Michael Diekmann said that the global demand for protection against life, property and health risks is growing far beyond developed markets.

"It is our goal to provide an increasing number of customers with this protection in order for them to be able to better participate in the economic development. We’ll explore these opportunities with Western Union, considering joint proposals to customers in the markets where we both operate," Diekmann said.

Commenting on the new business avenue of underwriting business, Western Union president and CEO Hikmet Ersek said the firm will leverage its brand and extensive network of 500,000 Agent locations in more than 200 countries and territories, and partner with insurance companies to offer products that better serve the two billion financially underserved consumers around the world.

The Western Union Company provides consumers and businesses an option to send and receive money across the globe, through a combined network of approximately 495,000 agent locations in 200 countries and territories.