Insurance is unlike most other financial products. The price of the product is determined before the cost is known. It’s difficult to know whether a customer will be involved in a car crash or if their home will be burgled or damaged by hail. The challenge for an insurer is to anticipate the potential risk and price it accurately and fairly, to ensure it’s neither overpriced nor underpriced. Likewise, a customer must be satisfied they are neither overinsured nor underinsured.

That’s why data is so important. IAG has the most extensive record of personal insurance claims history in Australia and has access to wide-ranging data, such as repair costs, weather patterns and crime statistics. Specialists are employed to analyse the data, including underwriters, actuaries, industry researchers and atmospheric scientists. This helps us calculate the costs associated with the risk so our customers pay both fair and accurate premiums based on their individual circumstances.

« FROM A CUSTOMERS PERSPECTIVE