STAKEHOLDER ENGAGEMENT
As a large general insurance company, IAG has extensive and often complex relationships with many stakeholders. There are a number of core groups who influence much of what we do, and who in turn are affected by our operations. These include customers, shareholders, employees, government bodies and regulators, suppliers, unions, community partners, business organisations and industry groups.
Only by demonstrating our value to, and building mutually beneficial relationships with, these groups will we retain our licence to operate.
| Customers |
| Shareholders |
| Employees |
| Government, regulators and industry |
| Suppliers |
| Unions |
| Community partners |
| Business organisations and industry groups |
Customers
IAG customers include individuals, businesses, government and non government organisations in all of the countries and communities in which we operate.
Our businesses provide insurance products to individual retail customers—individuals who are primarily home and car owners.
We sell products directly to these customers through our network of branches, franchises, country service centres, call centres and the internet. We also distribute products indirectly through intermediaries, such as insurance brokers and authorised representatives; and business partners, which include banks, credit unions and motor dealers.
Through our workers' compensation businesses, we also build relationships with injured workers and their employers.
We work to provide consistent, reliable and excellent service beyond the claim to all customers of our businesses.
To assess how well we are meeting customers' needs, we conduct regular satisfaction surveys and focus groups across our businesses. The results of selected surveys for our Australian and New Zealand operations can be found in the 2008 performance section of this website.
Through our workers compensation businesses, we receive ongoing formal feedback from regulators about our products and services. This feedback directly affects the profitability of these portfolios. We have also initiated a formal engagement process with employers, medical professionals and injured workers.
The wealth of data that IAG collects regarding weather patterns, claims and accidents is used to benefit our customers at every stage of customer contact. The online tools available through our personal lines insurance business are designed to assist customers to assess the safety and environmental performance of cars and home products. This is just one way in which we help our customers reduce their own risk.
Shareholders
We have around 901,000 ordinary shareholders. In addition, we have 4,300 preference shareholders and 6,600 investors in reset exchangeable securities, primarily comprising institutions and professional investors.
We keep our shareholders informed through regular announcements to the Australian Securities Exchange (ASX). They are also posted in the ASX and media releases section of this website.
Our results and announcements, which are released every six months, are webcast with archives available on our website.
Shareholders are encouraged to attend our annual general meeting (AGM) where they are able to ask questions of the board. Shareholders can also submit written questions to the company's auditor relating to the conduct of the audit and the content of the auditor's report to be considered at the AGM. The company's auditor attends the AGM to answer the qualifying questions. A list of questions is available at the AGM and the answers are posted on our website after the meeting. Our AGMs are also webcast and an archive copy is retained on our website.
Electronic proxy voting was introduced at the AGM in 2004 to make it easier for shareholders to lodge their vote on resolutions. There is no formal provision within our proxy voting policy for environmental or social issues, however, there is provision for corporate governance issues, which include any environmental and social issues.
We also communicate formally with shareholders through half year and annual reports.
Due to the size of our share register and the cost involved in communicating directly to our shareholder base, we seek media coverage of important events if we need to deliver information. We also encourage shareholders to use email to reduce paper usage and costs of postage, and provide an email news alert service.
All our share registry functions are performed by Computershare Investor Services, which maintains a dedicated IAG shareholder information line. We also have a shareholder centre on our website.
Employees
We have approximately 15,000 employees across IAG.
Our Australian employees are drawn from a variety of backgrounds and ethnic groups. 2008 data reveals our people speak more than 77 different languages and are from more than 100 different ethnic backgrounds. Women continue to comprise approximately 60% of our workforce, and our age profile in Australia is strongest in the 25–34 age bracket.
We have a number of formal and informal channels available for employees to provide feedback and give input. These include Staff Consultative Committees, CEO email boxes and annual employee engagement surveys. Our employees also have the opportunity to talk about their experiences and the work they do through internal publications and videos.
Managers hold regular performance and career planning discussions with their staff members. Many employees also participate in our annual planning sessions, during which our strategy is communicated and team goals and plans are established.
Government, regulators and industry
In every country where we conduct business, we maintain honest, open and cooperative relationships with government and regulatory officials.
IAG's Government & International Relations specialists manage the Group's relationships with government, regulatory stakeholders and industry bodies. Its responsibilities include monitoring government and regulatory activities that directly and indirectly impact the operating environment of IAG and its businesses. They are responsible for developing IAG's position on public policy issues and drafting submissions to governments where appropriate.
General insurers in Australia are subject to a significant amount of regulation. There is the corporate regulatory regime that applies to Australian incorporated businesses generally, as well as a range of industry specific regulations at Federal, State and Territory levels. These regulations cover prudential supervision, market conduct and consumer protection requirements.
As such, in Australia we are in continual dialogue with both Federal and State Governments; Federal regulators such as Australian Securities and Investments Commission (ASIC), Australian Prudential Regulation Authority (APRA) and Australian Competition and Consumer Commission (ACCC); statutory scheme regulators such as WorkCover Authority and relevant motor vehicle third party liability regulators; and industry associations such as the Insurance Council of Australia (ICA).
In New Zealand, our contact is with national government, as well as the New Zealand Securities Commission and the Commerce Commission and the Ministry of Economic Development.
In Asia, IAG has built relationships with regulators in our areas of operation; these include the Ministry of Commerce, Department of Insurance (Thailand), Bank Negara (Malaysia), Monetary Authority of Singapore (Singapore) and China Insurance Regulatory Commission (China).
In the United Kingdom IAG engages with the Financial Services Authority and Lloyd’s of London (as a market regulator).
We are actively involved in the public policy process and participate in parliamentary inquiries, make submissions and research policy issues to provide insurance protection and security to the community. All public government submissions are available on our website. We adopt an evidence based approach in public advocacy and aim to propose solutions that are in the best interests of our stakeholders. All political donations are made in accordance with relevant laws and regulations.
As part of IAG's commitment to open and transparent communication, all public government submissions are available to view on the IAG website.
Suppliers
Insuring businesses and protecting people on the road, in the home, and workplace requires IAG's businesses to have a vast network of suppliers across all industry areas. These include smash repairers, builders, jewellers, office supplies providers, car manufacturers, medical and healthcare providers, lawyers and doctors.
Our customers often see IAG suppliers as key representatives of the Group's operations. For that reason we seek out suppliers who share our values and philosophies.
IAG's Supplier Selection Guidelines aim to ensure that our suppliers share the Group's commitment to sustainability. The guidelines are supported by supplier performance reporting for strategic suppliers. These reports detail supplier performance across broad criteria: quality, commitment, pricing, implementation, sustainability, and technology. These requirements are in place in Australia and New Zealand.
We are developing consultative mechanisms for our preferred supplier network and providing incentives for them to increase the sustainability of their operations. Our preferred supplier code of practice also outlines our responsibility to our supply chain partners, including their rights to dispute resolution and our people's responsibility to interact with our preferred suppliers fairly.
We measure our major suppliers on their contribution to our sustainability targets and their own sustainability initiatives. In addition, we make available a range of cost competitive, environmentally friendly products from our office supplies provider.
Unions
Just over 13% of IAG's Australian employees are members of relevant unions (Finance Sector Union and Australian Metal Workers Union). In New Zealand, 48% of employees are members of unions (Public Service Association, IAG NZ Staff Association and Finsec, New Zealand’s financial sector union).
Our consultation process with the Finance Sector Union (FSU) is detailed in the IAG Enterprise Agreement 2003 (Agreement). Under the Agreement, we consult with the FSU regarding workplace change programs impacting on employees, when positions are being made redundant and/or employees are being retrenched. FSU representatives are invited to address new recruits at our induction programs. In accordance with the Agreement's grievance procedure, they are recognised as an employee representative.
This process is similar in New Zealand and detailed in the respective union collective employment agreements.
Community partners
Our community programs are focused on risk reduction, specifically targeting road and home safety, crime prevention, workplace safety, emergency services and climate change.
IAG also engages with community organisations, government agencies and other businesses to deliver risk reduction research and advocacy programs.
A number of our community partners in Australia are also supported via IAG's workplace giving program, through which employees can donate their before tax pay, with IAG matching these donations. Community partners provide regular updates on how this support is being used.
In house teams manage our day to day relationships with partner organisations in Australia and New Zealand.
In Australia, our sponsorships operate at the national, state and local level, and include: Kidsafe (in Australian Capital Territory, Western Australia and Queensland); NRMA CareFlight (in New South Wales); the Salvation Army Emergency Services (in New South Wales, Australian Capital Territory, Queensland, Western Australia and and South Australia); and, Queensland State Emergency Services who are closely aligned to our own safety culture.
In New Zealand, our sponsorships include Victim Support, Paralympics New Zealand and WWF-NZ.
In the United Kingdom we sponsor the Pink Ribbon Foundation as part of our new socially responsible insurance product insurepink.
Business organisations and industry groups
A number of our employees are representatives in business organisations and industry groups. For example, IAG works closely with the Insurance Council of Australia (ICA), and we participate in many of their committees.
We also have representatives on the United Nations Environment Program Finance Initiative (UNEP FI) Insurance Working Group and we are a member of the Geneva Association and the Australian Business Roundtable on Climate Change.
In New Zealand, we are members of the New Zealand Green Building Council, New Zealand Business Council for Sustainable Development and are represented on the board of the New Zealand Sustainable Business Network.
We encourage our people to take part in public debate on areas of relevance to our core business. Our managers regularly speak at seminars, conferences and public hearings.
