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 year’s 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 didn’t grow up dreaming they’d 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 people’s lifestyles or businesses could be destroyed.

Our employees’ decisions are guided by four principles…

PAYING CLAIMS:
CUSTOMERS EXPECT THEIR CLAIMS WILL BE PAID. THAT’S WHY WE’RE 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.

That’s why we use our extensive data records to help us calculate each customer’s 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.

IAG’s 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.

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Additional Links:

IAG Annual Report 2005
IAG Annual Report 2004
www.iag.com.au

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IAG Annual Report 2006 - Full
IAG Annual Report 2006

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