Introduction
IAG is a publicly listed, Australian owned company with over 19 million risks in force" (covered by our policies) across Australia and New Zealand, employing approximately 11,000 people and providing personal, commercial and general insurance products and services under some of the region's most trusted and respected brands, including NRMA Insurance, SGIO, SGIC, CGU, Swann, NZI and State. IAG also owns a roadside assistance venture in China, the Beijing Continental Automobile Association. Both China and New Zealand operations will be detailed in the Sustainability Report in 2005.
Insurance Australia Group's Sustainability Report 2004 profiles IAG's unique approach to sustainability as a business driver. As well, the report covers the organisation's management and performance in sustainability. The Sustainability report places IAG's performance in the broader context of sustainability challenges, risks and opportunities.
This report covers IAG's Australian operations only, unless otherwise stated and deals with the 2003/2004 financial year. Thank you to IAG employees and external stakeholders who assisted in the development of this report. Please offer feedback on the report by emailing: sustainability@iag.com.au
What Insurance Means to Insurance Australia Group
The basic principle of insurance is simple. Premiums are paid to insurers to reduce the financial hardship of an unexpected loss.
While the principle may be simple, the mechanics of running an insurance company are not.
Insurers price products before their actual cost is known. That's made more difficult by the influence of long-term cycles outside our control. Weather patterns, investment returns, changing regulation, availability of capital and reinsurance, and shifting community attitudes towards risk, can all take years to manifest themselves. Insurers also deal with events that happen at a moment's notice, like the damage from a severe storm.
Although IAG deals in uncertainties, there is one thing we do know for sure. One in three households in Australia and New Zealand relies on us to protect them and their assets. It's a responsibility we take seriously, and one we believe requires us to deliver value in four ways:
- paying claims;
- understanding and pricing risk;
- managing our costs; and
- reducing risk in the community.
Aligning our people and our business around these four principles is the key to ensuring our future sustainability and creating value for our shareholders.
indicates that KPMG has provided assurance on the figures. For more information please see the Assurance statement.