IAG provied an update on its business strategy at its Business Update for investors on 9 December.
IAG Managing Director and CEO Nick Hawkins outlined the initiatives being implemented in IAG’s three operating businesses to achieve the company’s objective – to create a stronger, more resilient IAG – followed by an update from its Chief Financial Officer.
“Over the past couple of years, as an industry and particularly as a company, we’ve had to face some serious challenges. We’ve appropriately provided for these and restored capital where required to address all the issues from a balance sheet point of view. I’ve also made some fundamental changes to our strategy and organisational design,” Hawkins said.
Expanding on IAG’s growth agenda Hawkins outlined IAG’s ambition in the next five years to add one million new customers to the 8.5 million the company already serves, and to ensure more than 80% of customers’ activity occurs through digital channels.
“Our ability to invest time and effort in delivering on our growth agenda is rapidly improving. We’re already seeing a turnaround in our Intermediated business in Australia as we work to deliver at least $250 million of insurance profit in that business by FY24.
“Our Direct business in Australia has launched its growth plan, taking NRMA Insurance national and setting itself up as a serious player in the youth market with Rollin’, and our New Zealand business continues to strengthen its foundations and deliver ongoing strong results,” Hawkins said.
IAG’s largest operating business, Direct Insurance Australia, has an ambition to bring on board 750,000 of the one million customers the company aims to attract over the next five years and deliver $400 million of value through initiatives to increase claims and supply chain effectiveness.
At the update Hawkins outlined company-wide initiatives to differentiate the business and improve customer experiences.
“We are driving enterprise-wide efficiency, by simplifying the processes and technology that support our business. We are well on the way to establishing an enterprise platform that will simplify our back office, improve our risk processes, and reduce our costs to serve. This will create opportunities to grow and improve our customer experiences.
“We are focused on where our scale can deliver operating or structural advantages that can differentiate our company, particularly in areas of supply chain, claims handling and underwriting. Claims optimisation and supply chain efficiency are common threads across all our businesses and can deliver real financial benefits,” Hawkins said.