Initiatives
Corporate governance: Following the publication in March 2003 of the ASX's Principles of Good Corporate Governance and Best Practice Recommendations, IAG's directors examined the Group's corporate governance framework and during the 2003/4 year made some adjustments to ensure that practices meet or exceed the ASX recommendations. These adjustments included the publication of the charters of the Board's and its three standing committees, the Group's Code of Conduct and Continuous Disclosure and Insider Trading Policy.
IAG has also actively participated in the debate to improve Australia's corporate governance, making submissions to a parliamentary committee on the CLERP 9 legislation, to ASIC on the Financial Services Reform Act, to the Davis Report on the merits of financial system guarantees, to the Potts Report on the regulation of direct offshore foreign insurers and discretionary mutual funds, as well as proposals to APRA to strengthen the prudential regime for the country's general insurance industry. All public government submissions are included on IAG's website.
IAG representatives have also participated in forums, working parties and committees of insurance industry associations and accounting and actuarial professional bodies to formulate, among other things, the new General Insurance Code of Practice and to respond to proposals for the introduction of new accounting standards which have particular application to the general insurance industry.
The Group is confident that through active engagement with government, regulators, industry and professional groups, it can best work to ensure that the company interests and those of its stakeholders are properly considered when it comes to formulating proposals to improve Australia's corporate governance, general insurance prudential regime and insurance industry practices. Appropriate regulation improves, rather than stifles, competition, protects consumers and promotes and sustains public confidence in insurers and their products.
Reputation: Since reputation is IAG's most valuable intangible asset, ethical and responsible decision-making is taken very seriously. Our Code of Conduct extends to all employees. It is designed to encourage ethical and appropriate behaviour in all avenues of work, based on: acting honestly and openly in all dealings; complying with all laws and industry codes that regulate the Group's activities; abiding by IAG rules to prevent insider trading; maintaining confidentiality; and avoiding conflicts of interest.
Remuneration strategies: IAG's approach to remuneration for all employees, including executives and directors, is based on ensuring that the Group can attract and retain the best people to drive performance and deliver fair returns to shareholders. At Board level, IAG's Nomination, Remuneration & Corporate Governance Committee ensures overall remuneration and human resource policies fit the Group's strategic goals, and monitors their effectiveness, integrity and compliance. It comprises the chairman and two non-executive directors.
indicates that KPMG has provided assurance on the figures. For more information please see the Assurance statement.
