Shared value in action
Safer at work
The health, safety and wellbeing of our people is paramount. Accidents are avoidable so we're working with our people, partners and customers to ensure they don't happen. And when things do go wrong, we're prioritising physical and emotional safety ensuring people have the tools they need to recover quickly.
This year, to further improve our people’s health and wellbeing we launched several initiatives to reduce workplace risk. My Health Portal is an online hub with health management tools, research, local health events and discounts. The portal works in tandem with our existing counselling service, the Employee Assistance Program.
We are strengthening our proactive safety culture by reviewing our Safe and Well strategy. Monitoring our lost-time injury frequency rate is a big part of this, as is our work to reduce hazards such as those related to occupational violence, psychosocial stress, ergonomics and mobile work.
To alleviate the stress associated with the loss of a home or possessions we offer our customers free access to our Employee Assistance Program during the claims process.
With Lifeline Canberra, we funded a series of suicide intervention workshops for community members affected by asbestos contamination. The workshops taught participants how to recognise someone at risk and how to reach out to keep them safe.
Safer at home
Too often, homes are lost or damaged due to weather, crime and natural disasters. We’re helping Australians protect what they love: their home, family, community and livelihood.
Extreme weather events lead to a large number of home claims. In partnership with the SES, our StormSafe campaign helps people minimise risks in their home when storms hit, reducing loss and claims. StormSafe reached three million people last year and won the NSW Resilient Australia award for disaster preparedness.
Meanwhile, more than 200,000 people learnt more about the common risks that threaten their homes by visiting our Safer Homes website. The website demonstrates some of the risks we consider when determining insurance premiums, and teaches people how to reduce these risks.
Safer on our roads
Road accidents cause significant injury and loss of life. We’re helping to create the world’s safest vehicles, drivers and roads through better vehicle design, safer driver training and smarter infrastructure.
Over the last decade, safer vehicles contributed to the drop in road fatalities of 28% in Australia and 40% in New Zealand. But more must be done because in Australia, around 1,000 people die on our roads each year, and over 32,000 are seriously injured. Fewer collisions results in fewer claims, less trauma and safer communities.
When car theft peaked in the 1980s, pushing premiums to unaffordable levels, the IAG Research Centre was formed. Since then, the Centre has been quietly making your world a safer place. It created Australia’s first car security rating system, and shared that system with manufactures and consumers, halving the rate of cars being stolen.
The Centre delivered Australia’s first ‘blackspots’ program to save lives and prevent injuries and is also involved in trialling an app that uses IAG’s claims data to notify drivers of blackspots.
No matter how small the water current, driving through floodwaters can be a life-threatening decision. In order to better communicate this message, IAG and the NSW SES formed a partnership with a team from the University of Western Sydney’s water research laboratory to test how cars behave in flash floods. We used this pioneering research to reinforce the message: it is never safe to enter floodwater.
Safer leads to stronger: when people are safer they create businesses and communities that are more resilient and stronger.
We don’t define value solely in financial terms - it’s about always acting ethically too. We are committed to being as profitable and efficient as possible while having a positive impact on our customers, partners, shareholders, the community and our employees.
We provide an inclusive workplace and are concentrating on improving gender, age and ethnic diversity in our organisation. These measures make our workforce more sustainable and bring us closer to our customers.
More than 200 of our leaders and 500 of our employees have attended inclusive leadership workshops in Australia and New Zealand. These demonstrate the importance of diversity and inclusivity in generating fresh ideas and nearly all participants agreed the workshops paved the way for them to adopt more inclusive leadership styles.
Our Pride @IAG and Pride @IAGNZ employee advocacy groups represent and support those who identify as part of the LGBTIQ community across our workforce, help us tackle some of the unique challenges we face, and celebrate all that we have accomplished.
Our second Reconciliation Action Plan (RAP) launched in 2015 is a ‘stretch’ RAP, meaning we set ‘stretch’ targets across the business. We have set a target, to have a 1.5% ratio of Indigenous employees in Australia by November 2018. To date, more than 35 Indigenous university students have done an internship at IAG through our CareerTrackers program and three have accepted permanent roles.
Responding to climate change is strongly aligned with IAG’s purpose to make your world a safer place. We have refreshed our position on climate change and set a new target to reduce our absolute greenhouse gas emissions by 10% by 2020.
We have been carbon neutral since 2012 by combining efficiency measures with the purchase of offsets. Our partnership with the Energy Efficiency and Conservation Authority in New Zealand has identified significant opportunities make more efficient use of electricity, and in Australia, we are implementing energy efficiency improvements in our buildings.
We constantly seek new ways to improve our supply chain. Nearly thirty percent of our exclusive smash repairers are accredited by our Ecosmash environmental program and we aim to raise that to 100%. When we can, we choose Indigenous suppliers through Supply Nation and have committed to increase the number of Indigenous suppliers used across IAG from 8 to 12.
Resilience to natural perils
While natural disasters can't be avoided, their impact can be mitigated and minimised. We're collaborating with communities, industries and government to drive global best practice in understanding and mitigating the impact of natural perils.
Australia is especially prone to natural disasters including floods, cyclones, storms and bushfires. As natural disasters increase in frequency and severity, so does the cost to lives, livelihoods and property. New Zealand, too, is very exposed to earthquakes, storms, tornadoes and floods - all events that have a huge impact on communities.
Through our collaboration with the Australian Business Roundtable for Disaster Resilience & Safer Communities and later, Resilient New Zealand, we contribute to research and submissions to influence policy and help make communities more resilient.
The two roundtables bring together business, humanitarian organisations and government to change public policy and develop a more sustainable, coordinated approach to natural disaster resilience.
The Australian Business Roundtable’s research showed that the nation spends an estimated $560 million annually on disaster recovery yet invests just $50 million annually in mitigation measures. This means that for every $10 spent on post-disaster recovery, only $1 is spent on preventative measures to increase the safety of communities.
On top of their research work, the roundtables conduct extensive advocacy work to improve awareness about preparing for and responding to natural disasters. More resilient communities and infrastructure suffer less loss and destruction, reducing IAG’s cost of claims and increasing its profitability. It’s a virtuous cycle: IAG can reinvest those savings to make insurance more affordable, or use it to build even more resilient communities.
In partnership with Suncorp and James Cook University (JCU) Cyclone Testing Centre, we are studying the impact of tropical cyclones on strata properties in North Queensland. By sharing our claims data with JCU we are providing designers, builders and insurers with a better understanding of what increases claims costs after cyclones, so we can help build resilience in affected communities.
Resilience isn’t just about how you survive the hard times, it’s also about how you thrive in the good times. Aside from working on our own resilience, we’re sharing strategies with other businesses so they’re well placed to thrive in good and bad times.
Resilient businesses power strong communities. This is particularly evident in rural and regional Australia where bad weather, natural disaster risks, fluctuating market forces and remoteness can make business hard to predict.
Last year we consulted extensively with rural customers to better understand how to support them. From that research we’re supporting more sustainable farming practices. Recently, CGU partnered with the remote medical specialist service, Best Doctors, to provide 59,000 CountryPak customers and 10,000 brokers with free access to some of the world’s best doctors.
We know our deep knowledge of risk can be used to craft other innovative services, as well as insurance. Our risk, resilience and recovery service provides expert advice to our business customers to help them assess risk, become more resilient and implement a recovery program if an adverse event occurs.
Safer & stronger leads to more confident: when people are protected by insurance and risk is managed well, it gives them the certainty, peace of mind and confidence to prosper.
Access & affordability solutions
We want to offer accessible and affordable insurance that minimises the disruption in people’s lives. When people are protected, with insurance covered and risk managed, they have the confidence and certainty to prosper.
IAG has always been there to help our customers recover from unexpected loss, as well as manage and reduce risk before disaster strikes. However, we also have the scale and influence to help resolve social issues such as non-insurance and under-insurance.
One in 20 Australian homes is not insured and up to 30,000 home owners fail to renew every year. If disaster strikes and there is no insurance, there is a flow-on impact to communities and broader social services.
In 2015 we launched Insurance 4 That to respond to the needs of typically uninsured Australians. This accessible, low-cost insurance product allows people to insure single items and may help groups such as retirees, single parent households and students protect what matters most to them.
In New Zealand, we launched AMI Renters Insurance and AMI Young Drivers insurance; the latter aims to make car insurance more affordable for drivers under 25 by offering a 50% no claim bonus up front.
We're piloting virtual reality technology to educate people about hazards in the home and the consequences of not being insured or being underinsured. Around 97% of those who have tried the pilot said they were more likely to spot hazards in their home and 56% said they’re more likely to review their current insurance cover.
Meanwhile, three of our Asian joint ventures - SBI General in India, AAA Assurance in Vietnam and Safety in Thailand – are offering microinsurance products such as accident, home fire protection or motorbike theft with premiums at less than A$5.
Connected communities are where good things begin. We’re working to find better ways to foster community connection and resilience and, in turn, encourage prosperity.
Community resilience is a big focus for global and local disaster management. We know that connected communities with engaged residents better prepare for, and recover from, adverse events.
IAG is working with selected communities affected by disaster to rebuild and improve their resilience. In Victoria, we’re working on two initiatives with communities in the Murrindindi Shire devastated by the 2009 Black Saturday bushfires. The first is centred on children, the second on a local resilience network aiming to help confidence flourish in the community.
IAG is also working to better meet the needs of the under-serviced insurance market of Indigenous Australians through our Indigenous insurance research project.
Our partnership with Jawun has already facilitated secondments for 21 IAG employees in Indigenous organisations. Through their Jawun placements, our people contribute their expertise in Indigenous-led projects to build organisational capacity and make the Indigenous communities we work with more resilient and prosperous.