MANAGING COSTS
Operating costs are factored into
premium prices, so we must be as
efficient and productive as possible.
IAG insured property valued at around $990 billion during the year across Australia, New Zealand, Asia and the United Kingdom. Operating with such large scale allows us to manage our costs efficiently. For example, we can access volume discounts across our supply chain without sacrificing quality for customers. It also means we can spread our costs across a large number of policies, delivering greater stability of earnings for shareholders.
One way we manage costs is explained.
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CONTRIBUTORS TO THE COST OF RUNNING OUR BUSINESS |
The split between costs and underwriting profit for every dollar of premium IAG earned, for the year to 30 June 2007. |
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ADMINISTRATION RATIO |
Underwriting and administration costs measured as a percentage of our net earned premium. |
