As an insurer, we are expected to be experts in pricing risk - that means calculating the right premium for our customers. It's important that we do not under-price risk, putting our ability to pay claims into question, nor over-price risk, which would affect the affordability of insurance.

Fortunately, our understanding of risk is among the best in the world. We employ specialists such as underwriters, actuaries, industry researchers and atmospheric scientists to analyse data.

We have the most extensive record of personal insurance claims history in Australia, giving us access to vast amounts of data such as repair costs, weather patterns and crime statistics. This wide-ranging data helps us price risk fairly for each customer; it also presents opportunities to help the community reduce risk.

In the commercial environment, this means providing our customers with information to help them choose the right level of insurance cover and the right products to meet their needs.

In the social environment, this means taking a leading role in policy debates such as those on legal reform when Australia's public liability insurance system became unworkable.

In the natural environment, this means continually monitoring and analysing weather trends. We are acutely aware of the impact of climate change on risks faced by the insurance industry. Scientists believe that increasing global temperatures will bring an increased frequency and intensity of many extreme weather events.

The last 19 out of 20 major insurance events in Australia have been weather related and we are working to mitigate the impacts of climate change and are learning more about weather patterns and how they may affect Australians' lives.

Because climate change means that historical records become less relevant in determining future risk, we commission research into extreme weather risk and how it may change in a future climate. Through this work, we are better able to make informed decisions for our business.

Climate change is also central to why we are seeking to reduce our own environmental footprint, and encouraging our customers and suppliers to do the same.

Challenge: Balancing affordable premiums with equitable compensation
Challenge: Flood insurance - an Australian community perspective
Case study: Weather risks better understood and measured
Case study: Better car designs to reduce theft and cut repair costs