GLOSSARY
Below are details of the definitions used in the content and calculation of data represented in the graphs and charts in sections of this report. Unless specified indicators pertain to Australian and New Zealand data. New Zealand brands included in the definitions include State and NZI unless otherwise stated.
Absenteeism :
Employee absenteeism is a measure to indicate the absence level in IAG. Absenteeism is determined by dividing the total annual unscheduled absence days by total annual days worked.
Air travel:
Distance travelled by IAG employees including domestic, trans-Tasman and international flights booked through the online travel service provider. New Zealand results include brands: State, NZI, Swann and NAC.
Business Volume:
This measures the volume of business at a point in time. The basis of the measure depends on the class of business. In the personal lines class, the relevant volume measure is ‘risks in force’. In commercial classes, the volume measure is ‘policies in force’. The difference in the definition is required to capture the distinct nature of IAG’s business mix. New Zealand brands included in this measurement: State, NZI, Mike Henry Travel Insurance.
Claims satisfaction levels (NZ):
Satisfaction levels of personal lines customers who have had a claim closed in the last month.
Satisfaction is measured by a third party survey where the percentage of customers rating 5, 6 or 7 on a 7 point scale are considered to be satisfied (7 = extremely satisfied and 1 = extremely dissatisfied).
CO2 emissions:
In this instance, CO2 equivalent emissions are calculated for electricity use, office paper and print paper consumption, tool of trade fuel consumption and air travel using emission factors obtained from the Australian Greenhouse Office (AGO). The 2005 conversion factors are taken from the December 2005 AGO workbook. Green power electricity emissions are not included. For New Zealand data factors were obtained from the New Zealand Business Council for Sustainable Development “Emissions Factors for New Zealand Businesses” and the Australian Greenhouse Office workbook (for paper only). New Zealand brands included in this measurement: State, NZI, Swann, NAC.
Contribution to Gross Domestic product (GDP):
The Group net earned premium as a percentage of GDP, where GDP was obtained from the Australian Bureau of Statistics document title “National Income Expenditure and Product” from the National Accounts Catalogue 5206.0 – National Income, Expenditure and Product – June 2006 – Table 3: Key National Account Aggregates.
NZ Contribution to GDP obtained from Statistics New Zealand, document title “Gross Domestic Product: June 2006 - All Tables”; Table 6.1; GDP in Current Prices: New Zealand brands included in this measurement: State, NZI, Swann, Driveright, Mike Henry Travel, NAC.
Customer satisfaction levels:
This measures the end to end customer experience in Australia when enquiring, taking out, renewing or making a claim for direct personal insurance. Customer satisfaction levels are determined by a third party through telephone interviews with a random sample of customers contacted. During the year there has been a change in the survey provider as a result figures are based on six months of data but are consistent with the findings from original service provider.
Customer satisfaction levels (NZ):
A measure of customer satisfaction with non-claims related contact. The survey is a random sample of customers who have had a non-claims related contact (eg requested a quote, changed their address, taken out a policy) within the last month. Satisfaction is measured by a third party survey where the percentage of customers rating 5, 6 or 7 on a 7 point scale are considered to be satisfied (7 = extremely satisfied and 1 = extremely dissatisfied).
communityhelp grants:
Cash grants given to community groups through the communityhelp grants program. Figures reported are inclusive of GST.
Dollar values:
Unless otherwise stated all dollar values listed in this report are based on Australian dollars. Where New Zealand dollars have been converted into Australian dollars an exchange rate of 0.89325 has been used. This is based on average exchange rate for the 2005/06 year.
Electricity:
In Australia this includes metered electricity consumption for those sites directly owned or controlled by IAG (approximately 70% of all sites). Where metered data is not available, electricity use has been estimated based on an equivalent floor space model using consumption figures for similar known sites. Includes metered electricity consumption for those sites directly owned or controlled by IAG NZ (all sites).
NB: 2006 electricity data covers the period June 2005- May 2006, whereas in 2005 it covered the period July 2004 - June 2005.
Employee engagement score:
Determined through six mandatory questions in the ‘Your Voice’ employee survey conducted by a third party. The survey assesses the extent to which employees consistently say positive things about working at IAG, want to stay with IAG and strive to achieve above and beyond what is expected of them. Participation in the survey is voluntary but is made available to all employees, with the exception of those employees in Australia who have been employed for less than 3 months. New Zealand brands included in this measurement: State, NZI Swann, NAC.
Employee volunteer hours:
This measures the total number of hours that IAG employees have logged for community/ charity leave, defence forces leave and emergency services leave for the year. Defence forces leave and emergency services leave are newly included in 2006.
FTE (full time equivalent):
FTE is a measure of the size of employees that takes account of part-time employees. It is determined by dividing working hours (excluding overtime) for all employees by the standard full time hours. The FTE includes all permanent full-time and part-time employees but excludes casual employees, guests, employees on a fixed term contract and employees on extended leave (over 28 consecutive calendar days) on the day that we report the data.
Green electricity:
Green Power purchased by IAG. Green Power, which is supplied from Energex as part of a Department of Energy, Utilities and Sustainability Green Power programme.
Fuel consumption:
Petrol consumed by IAG’s tool of trade fleet. Diesel use ( Australia only) is not reported since it accounts for a very small proportion of overall fuel use (less than 0.1% of total Australian fuel consumption). No adjustments are made for any personal usage of the tool of trade vehicles.
Full-time employees versus part-time employees:
Percentage of full time versus part-time employees included in headcount as assessed through the internal online Human Resources system codes. Full time employees work 35 or 37.5 hours per week depending on their Enterprise Agreement. Part-time employees work less than 35 hours per week. In New Zealand, full time employees work 37.5 hours per work and part time employees work less than 37.5 hours per week.
Funding of the OH&S department:
This measure includes funding of Occupational Health and safety (OH&S) initiatives such as spending on medical costs for employees, fire protection, first aid training and employee assistance programs, as well as funding of the OH&S department’s salaries and on-costs.
Funds for community investment:
This measures direct financial support of community groups and programs, as well as indirect support to help promote and raise awareness of these community organisations. For Australia, this also includes direct IAG management and administration-related costs. Figures reported are exclusive of GST.
Gross written premium:
The total amount received by the Group from customers for the payment of their insurance policies.
Headcount:
The number of people employed by IAG, regardless of hours worked, excluding casuals, guests and employees on a fixed term contract.
IAG population aged 25-34 (inclusive) compared to the Australian Labour Force of the same age Group:
The percentage of IAG employees that are included in headcount who are aged 25-34 (inclusive) compared to the percentage of the Australian Labour Force of the same age group.
The Australian Bureau of Statistics (ABS) defines Labour Force as the ‘labour supply available for the production of economic goods and services in a given period and include both those employed or unemployed’. Data is obtained from the Australian Labour Market Statistics document published by ABS every quarter.
Indigenous employment:
Number of employees included in headcount that identify themselves as indigenous employees via a diversity survey included in IAG’s new employee starter kits and online diversity and Equal Employment Opportunity training.
Lost time injury frequency rate (LTIFR):
The number of work-related injuries resulting in a lost time injury, per million hours worked. A lost time injury is an injury that has resulted in at least one shift / days absence from work and for which a workers compensation claim has been lodged as at 30 June 2006. Million hours work includes all scheduled hours, plus overtime less scheduled leave (i.e. annual leave) and also includes the hours worked by casual employees.
Male to female salary ratio:
The ratio is determined by dividing the average of male employees’ annual FTE salary by the average of female employees’ annual FTE salary. To obtain annual FTE salary, individual male salaries are equated to 37.5 hours and the total sum of these full-time equivalent salaries is divided by total male headcount. The same applies to individual female salaries. This calculation has changed from 2004/05, in which headcount salary was used.
Net claims expense:
The amount paid out by the Group in claims during the year, as well as an estimate of how much needed to pay on unsettled claims, plus claims handling costs such as legal and administrative expenses, less recoveries from reinsurers and other parties.
Net earned premium:
The portion of Group premiums written which relate to the financial year, minus the reinsurance expense.
Net profit attributable to shareholders:
The net result after allowing for income taxes and the share of profit owing to minority shareholders. The Group net profit attributable to shareholders is used in the Australian indicators only.
Number of fire wardens:
The number of staff who are nominated as firewardens. Staff are trained through external service providers which vary depending on location.
Number of level 2 and 3 customer complaints:
IAG records three levels of complaints from its personal insurance customers under the NRMA, SGIC and SGIO brands. Level 1 includes issues raised at branch level, Level 2 includes complaints escalated to IAG head office customer relations specialists and Level 3 are those complaints that a customer takes to an external third party for resolution. Figures reported include only Level 2 complaints and those that may become Level 3 complaints.
Number of staff trained in first aid:
The current number of staff included in headcount who had completed first aid training as at 30 June 2006. This comprises staff who attended either a four hour CPR training course since January 2004 in Australia and July 2004 in New Zealand or hold a current Senior First Aid Certificate.
Office paper consumption:
A3 and A4 office paper consumption as determined through an in-house ordering system using two separate suppliers. This excludes glossy paper. In New Zealand, this measures office paper consumption as determined through supplier invoices for paper ordered during the month.
Print paper consumption:
Print paper consumption consisting of commercially printed material (booklets, envelopes, brochures and customer documentation such as renewals and certificates of insurance).
Recycled commingled waste:
This is a measure of paper, cardboard and commingled material collected for recycling at nine Australian IAG sites (in FY 05 2 sites), as well as documents destroyed on behalf of IAG. New Zealand figures include paper and cardboard recycled from most sites whilst commingled sites is only collected from Auckland and Wellington sites (brands include: State, NZI, Swann). For New Zealand, 2005 figures included paper recycled only.
Risks in force :
Risk refers to the subject matter that an insurance policy or contract protects (e.g. number of vehicles, houses, employees). An insurance policy may cover one risk or many risks, depending on the terms of the policy. ‘Risks in force’ is a measure of the total number of risks covered by an insurance company at a point in time.
Policies in force :
This is a measure of the total number of policies covered by an insurance company at a point in time.
Staff turnover:
Turnover percentage is the sum of the monthly turnover rates determined by dividing the total number of terminations by headcount each month. Termination includes all permanent full-time and part-time employees but excludes casual employees, guests and employees on a fixed term contract.
Sustainability nominations for rewardhelp:
rewardhelp is the internal staff recognition programme. This indicator takes into account all rewardhelp nominations in the Sustainability & Innovations category.
Women in executive management:
This measures the total percentage of women on the IAG Executive team.
Women in senior management:
Total percentage of females in senior management positions is determined by women in the position of Senior Manager, Head of and Executive roles as per IAG’s organisational structure.
Workplace accidents (NZ):
The number of injuries accepted by the New Zealand Accident Compensation Corporation as work-related.
Workplace giving programme
The dollars contributed by staff through our payroll deduction scheme.
For a controlled version of the indicator definitions, please download IAG Glossary PDF. (109KB)
