Paying claims is what IAG is here to do. We sell a 'promise' to our customers. Those customers pay their premiums with the peace of mind of knowing that, should they suffer an unfortunate event, we will provide them with cover when they need it most - at claims time.

Through our brands NRMA Insurance, CGU, SGIO, SGIC and Swann Insurance, we pay around $11 million in claims every day. Having the financial reserves to be able to deliver on that promise is essential for all insurers, not only IAG.

What sets us apart from our competitors is how we manage the process of paying claims - how we help our customers repair, rebuild and recover in times of need.

That's why when our customers suffer an unexpected loss, we focus our efforts on replacing their goods, getting them back on the road or back to work by helping them recover as quickly as possible. We aim to make the payment of claims as efficient and painless as possible: a process we call 'going beyond the claim'.

Overall customer satisfaction

For our personal insurance products, we measure customer satisfaction with our service across our call centres, branches and our claims process.

We survey a selection of customers approximately 48 hours after an interaction with us in either one of our main direct channels: telephone business centres or branches. This survey is undertaken daily by an independent agency. Customers are asked a range of questions relevant to their experience. The questions were developed from focus groups conducted with customers to ensure we are tracking what customers expect and are looking for.

We also speak to our competitors' customers and use the same set of questions to give a market/industry view and set some context for our performance. Every six months we discuss and review the results of the surveys and action plans are then created and implemented over the following six months.

Claims satisfaction

We also conduct random phone surveys of our personal insurance customers who have recently lodged a claim. These are carried out by an external survey company, generally within one month of finalising a claim and the results are reported every six months.

As part of the phone surveys, our customers are asked to rate our overall claims service out of 10. The number of customers giving a rating of between six and 10 is represented as an overall percentage of the total surveyed.

In the 2005 financial year, 17,570 customer surveys were conducted across all of our brands: 87% of the customers surveyed rated our claims service six out of ten or better.

Customer complaints

We have a clear internal dispute resolution process through which customers can escalate their complaints. This provides an internal, independent review of all claims and policy disagreements.

Customers who remain unsatisfied with the internal dispute resolution decision are directed to the Insurance Ombudsman Service (IOS). The IOS an external body established by the Insurance Council of Australia to resolve disputes between customers and their insurance companies. This is the final avenue of appeal and the decision is binding on all parties. IAG is a member, and participates fully in, the IOS system.

Our dispute resolution process is clearly documented and customers are made aware of the process when appropriate.

The dispute process complies with the requirements outlined by the Financial Services Reform Act, the General Insurance Code of Practice, and various government bodies including ASIC and APRA.

We are committed to the efficient resolution of all complaints, openly welcoming feedback from any concerned customers.

Working towards sustainability through our supply chain

We have a network of 74 preferred builders who are engaged to carry out repair work to properties after home insurance claims. We recently formed a partnership with the Housing Industry Association (HIA) to offer a tailored one-day version of HIA's 'Greensmart' course to our preferred builders. The course will help builders with issues such as the use of sustainability rating tools, home water and energy efficiency, indoor air quality, and waste minimisation.

Key facts:

• 31 builders have attended 'Greensmart' training to date, with more courses to follow.
• 91 individual builders have attended courses, provided by IAG, on small business management and business succession planning.
• 235 individual builders attended asbestos safety training in September 2005.

As well as training our suppliers to take a more environmentally friendly approach, we're also looking at improving the environmental credentials of the goods we supply our customers. For example, when a customer's fridge is damaged and needs replacing, we encourage them to replace it with one that's more energy efficient. Our focus here is on working to create outcomes that are customer choice-driven, economically and environmentally sound and therefore sustainable.

Challenge: A supplier industry in reform
Case study: A focus on our supplier's future
Case study: Helping injured people get on with their lives