Annual Report Introduction
This annual report part three of a risk management story explores how Insurance Australia Group (IAG) operates, this time through the eyes of the people who work there. It follows last years report part two told from our customers perspective, while part one introduced the series. We trust this series of reports will help you view each 12-month performance as part of a long-term investment.
Many of the people at IAG would tell you they didnt grow up dreaming theyd work for an insurance company.
But the fact is, about 12,000 people work at IAG, and most of them stay for many years. Why? Because simply by doing their jobs, they are able to make positive changes to the communities in which they live. And they soon realise that without insurance, many peoples lifestyles or businesses could be destroyed.
Our employees decisions are guided by four principles
PAYING CLAIMS:
CUSTOMERS EXPECT THEIR CLAIMS WILL BE PAID. THATS WHY WERE HERE.
But what makes us different is the way we pay claims we focus on replacing their goods or getting them back on the road or back to work as quickly as possible.
UNDERSTANDING AND PRICING RISK:
WHEN CUSTOMERS TAKE OUT INSURANCE THEY WANT TO KNOW THE PRICE WE CHARGE IS ACCURATE AND FAIR.
Thats why we use our extensive data records to help us calculate each customers premium to ensure it is neither overpriced nor
underpriced.
MANAGING COSTS:
OPERATING COSTS ARE FACTORED INTO PREMIUM PRICES, SO WE MUST BE AS EFFICIENT AS POSSIBLE.
IAGs large scale allows us to manage costs through access to volume discounts across the supply chain, without sacrificing quality,
thereby keeping costs
per policy down.
REDUCING RISK:
NO ONE WANTS TO EXPERIENCE THE HARDSHIP THAT LEADS TO MAKING AN INSURANCE CLAIM.
IAG invests in programs to reduce the incidence
of crime; make our roads, homes and workplaces safer; help prevent fires; and reduce our
environmental impact because the fewer
risks there are, the
better for everyone.
stories of how these principles work in practice can be found in this report.

