Achievements
The Group is getting better at developing and delivering the right products and best services for customers. The IAG Customer Satisfaction Monitor allows the Group to regularly understand how it is performing with regards to key customer drivers such as value-for-money and clarity. It also helps IAG employees identify and address any problems in service delivery, so that the Group can consistently meet customers' needs and expectations. The results from the monitor are shared with employees to help them understand where they are doing well and where they need to focus on improving, resulting in specific action plans.
Key initiatives in the past 12 months included:
- Employee development and skilling on customer needs and effective service delivery
- Increased support from key management teams to make sure processes support employees delivering to customer needs
- Spending time with customers in the local areas to understand their particular needs and what the Group can be doing more effectively
- Ongoing use of the IAG Customer Satisfaction Monitor as a tool for regular reporting of customer satisfaction and areas of improved focus
This focus has contributed to continued reduction in customer complaints and an increase in customer satisfaction and retention rates, as can be seen in the graphs above.
The Group's commitment to customer service along with the diverse product portfolio has been instrumental in growing the customer base to over 16.4 million risks in force" in Australia. Sales people are trained in IAG customer service standards which are monitored to ensure they are being met. IAG companies are also signatories to the Insurance Council of Australia's General Insurance Code of Practice. This Code is currently under review, aiming to raise standards of practice and service in the general insurance industry. The full draft code can be found at www.ica.com.au/codepractice.
Challenges
The Group must manage the operational costs associated with providing insurance cover. To do so it minimises its own expenses and ensures customers' needs are met in a timely manner. As crime and environmental risk increases, so do insurance premiums. To minimise these increases, the Group is working with communities that face higher risks to try to reduce premium costs (see Reducing Society's Risks for a detailed discussion). As Australasia's leading general insurance group, a significant challenge lies in helping customers understand how their safety and environment behaviour can help reduce risk and thus the long-term cost of their policies.
The Risk Radar is a significant step in producing sustainable products for the Group's suppliers. Currently the Group is exploring the right mix of social and environmental sustainability to incorporate into cost-effective insurance products that would be attractive to customers. The Group's research has shown that take-up rates of sustainability insurance products are low, which presents a challenge in developing a solid business case for new products. IAG firmly believes that sustainability for customers must meet their needs and the needs of the broader community. The Group has some exciting initiatives in the pipeline and will report on new products in 2005.
indicates that KPMG has provided assurance on the figures. For more information please see the Assurance statement.