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80 years of damage detection: the Allianz Center for Technology looks to the future

  • The Allianz Center for Technology celebrates 80 years of industrial damage investigation and loss prevention
  • From its roots in Germany, the center increasingly responds to international assignments from Sao Paulo to Shanghai
  • Continued expansion and research in renewable energies


Download 80th Anniversary AZT Release here

PRESS RELEASE - Munich. November 21, 2012

A rotating compressor blade in a multi-ton gas turbine is broken; the power plant has to go offline. Millions of Euros lost with no clear answer as to the cause. Defective design, material failure or human error after all? This is a case that calls for the loss assessment experts from the Allianz Center for Technology (Allianz Zentrum für Technik or AZT). Their diagnosis: In a routine replacement of parts, compressor blades with a slightly different material composition were used, which could not sufficiently absorb the vibrations – and without failure the inevitable consequence.

The center has investigated many similar major industrial losses during its 80 years of existence – from the Hindenburg airship disaster (1937) to the turbine shaft accident at the Irsching power plant in 1987 to material problems in modern power plant boilers. Aside from loss assessments, the center, which is now part of Allianz’s industrial insurance carrier Allianz Global Corporate & Specialty (AGCS), also provides expertise in loss prevention. To mark AZT’s 80th anniversary, a comprehensive report has been published, which provides an in-depth look at how the center operates and showcases many of its ongoing research projects.

Experts for industrial technology

AZT specializes in industrial technologies such as energy, power plant technologies and  engineering. The center’s 15 engineers – among them electrical, mechanical or process engineers as well as chemists and material experts – investigate damages to core industrial equipment such as boilers, turbines, drives, generators and transformers. “The insights we gain from our assessments benefit not only us as an industrial insurer but our clients as well,” explains Dr. Johannes Stoiber, who jointly heads AZT with Stefan Thumm.

The specialist reports compiled from these investigations are used not only to analyze claims incidents but also to improve risk assessment by AGCS’s underwriters when insuring technical risks. The lessons learned are communicated to the affected companies as well, giving them the tools they need to develop practical responses and prevent future losses. “This way, we help each other to learn from damages,” says Dr. Stoiber.

Detective work on a microscopic level

Each AZT engineer investigates about 20 cases a year. In many instances, the AZT engineers trace the causes to the microscopic level. During laboratory analyses, they discover such root causes of claims as mechanical and thermal overstress, corrosion and material flaws. “Diagnosis is much easier today. Non-destructive testing has made enormous strides over the past 10 years,” co-head Thumm explains. Ultrasonic testing, internal stress measurements and scanning electron microscopes uncover even the tiniest source of a loss.

Nonetheless, on-site inspections remain indispensable. “A loss inspection resembles detective work,” Thumm says. At the site of the loss AZT engineers will closely scrutinize the damaged part, take photos of details, speak to involved employees and analyze operational data. Often there are several intertwined causes that can be attributed to the damage. “That’s why we have to investigate all aspects of a loss – including design, manufacturing and operations,” adds Thumm.

Expanding global activities

Established in 1932 in Berlin, AZT has its roots in Germany. Since its integration into the globally active AGCS, the center has increasingly also been assigned to international claims – for example, when a power plant in Brazil was damaged or a high-speed train in Shanghai caught fire. The international activities will be expanded further in coming years – particularly in the emerging markets of Asia and South America. “We have to know the ins and outs of different claims handling environments,” Dr. Stoiber explains. “But we have a universal strength – our independent judgment that draws from in-depth technical expertise.”

Claims investigation, however, is just one of AZT’s core businesses. The other is loss prevention. The center advises companies on technical loss prevention measures and conducts research for AGCS and third parties which is presented at conferences or published in white papers. “The best loss is the one that doesn’t happen,” says Dr. Stoiber.

Research in renewable energies

In its prevention work, AZT focuses on the fast-growing world of renewable energies such as geothermal energy, wind power and photovoltaics. For example, AZT has developed standards for automatic condition monitoring systems for wind generator units that have contributed decisively to their industry-wide application. The monitoring systems detect initial signs of overstress or material fatigue in the gear box or bearings of wind turbines. As a result, the affected parts can be replaced in time to prevent an actual loss.

The example of wind farms applies to other technologies as well. “We’re frequently faced with prototypical technologies where we lack any case history,” Dr. Stoiber explains. “Just as an industry continues to advance, so do we.”

Historical milestones of the Allianz Center for Technology

1932 The origins of AZT
Allianz Center for Technology was founded in Berlin as a materials testing center.

1937 A new location
With more than 17 employees and 470 cases a year, the center moved to new facilities on the outskirts of Berlin. The reputation of the institute led to the consultation of AZT in spectacular damages, including the analysis of the breakage of the propeller of a steam-driven ocean liner and the investigation into the causes for the accident of the airship Hindenburg in 1937.

1945 Recovery after war
The facility survived World War II largely intact. Work centered around power plant technology and corrosion problems.

1960s Settling and expanding in Munich
The testing institute in Ismaning, just north of Munich, opened in 1962. In addition to material analysis the center also began to work on precautionary analysis and monitoring of machinery. In 1968, AZT purchased one of the first scanning electron microscopes in Germany, whereby the institute became a benchmark authority in the analysis of material breakages.

1969 Allianz Center for Technology is created
Allianz transferred the materials analysis division to the “Allianz Zentrum für Technik GmbH.” The new center was responsible for coordinating all Allianz activities in damage research and loss prevention, concentrating technical services under one roof. The damage experts continued to develop and expand their methods and skills, as technical innovations and newly developed industrial branches, such as nuclear power plant engineering or medical technology, become more and more important.

Among the biggest damages the AZT investigated in the following years is the accident in the power plant Irsching, Bavaria, in 1987. Back then, the middle course of a turbine exploded into 30 pieces. One piece with a weight of more than one ton skidded up in the air and landed in a distance of about 1 kilometer to the power plant. Nobody was injured, but the property damage was enormous. After the accident, the AZT experts perfected the testing technology for turbines.

2000 up to today
As part of AGCS's subsidiary, Allianz Risk Consulting GmbH, AZT serves as a carrier for all technical pre- and post-loss services that are not part of any AGCS insurance policy. Beyond that, AZT’s priority is to offer technical services to clients globally via the AGCS global network of companies. Worldwide assignments of AZT include, for example, the fire damage inspection of the Transrapid in Shanghai, the failure inspection of a technical defect at the hydro power plant Itaipu in Brazil, as well as the analysis of a gear failure incident with the conveyor system at a copper mine in Chile.

Download 80th Anniversary AZT Release here

 

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