Our material topics

We conduct an annual materiality assessment to inform our enterprise-wide sustainability priorities, strategy setting and risk management processes.

Our approach is guided by the Global Reporting Initiative (GRI) standards and informed by IAG’s Strategic Risk Profile (SRP) and strategic trends analysis.

We also review our material topics against international frameworks including the United Nations Environment Programme Finance Initiative’s Principles for Sustainable Insurance (PSI), the World Economic Forum Global Risks Report and United Nations Sustainable Development Goals (SDGs).

This financial year we reviewed our material topics through the refresh of IAG’s Sustainability Strategy, completed an operating environment analysis, and tested our FY23 prioritised topics with internal and external stakeholders including our partners and investors.

This process of analysis and stakeholder engagement validated that our four material topics remain consistent with the FY23 assessment: climate change, disaster resilience and emergency response, affordability and availability of insurance, and trust and transparency.

Affordability and Availability of insurance

Inadequate insurance cover due to affordability issues or lack of suitable insurance products

Many people have inadequate insurance cover due to affordability issues, a lack of understanding around the level of protection they require, a lack of suitable insurance products, or due to different needs and vulnerabilities acting as barriers to being able to access insurance. We are conscious of the affordability challenges facing our customers and know that inadequate insurance reduces the ability of individuals, communities and our economy to recover from adverse events. As a major insurer, we have a responsibility to ensure insurance remains accessible and affordable. Increasing risk makes this a key challenge for IAG. We recognise the need for us to ensure products are in place to meet customers’ and community needs. . We also need to assist customers and communities to understand the level of protection they require. If we focus on our purpose, we will not only improve the resilience of our current customers and communities, but also open new market opportunities for IAG.

Disaster resilience and emergency response

Community preparation, adaptation, and response to the impacts of natural disasters and climate change.

At IAG we see first-hand the impact that increases in frequency and severity of extreme weather is having on our customers and communities. By supporting our customers to be more resilient to extreme weather, we can help reduce the impacts physical climate risks have on them and our business. To support our customers we share our claims data analysis and extreme weather insights through targeted research and brand-led initiatives, including the NRMA Insurance Wild Weather Tracker. This helps people to understand their risk, suggests actions they can take to be better prepared, and provides access to tools and resources that help them put these actions into place. We cannot deliver this change alone and have a long history of partnering with experts, including the Australian Red Cross, South Australia State Emergency Service, Resilient Building Council, Australian Resilience Corps, GIVIT, and Habitat for Humanity in New Zealand.

Climate change

Risks and opportunities of a changing climate, and the social and financial impacts of natural disasters.

Climate drivers and weather systems impacting our communities are already influenced by human caused climate change. Our research indicates the frequency and severity of extreme weather is likely to be strongly influenced by climate change over much of the 21st century. We are there when extreme weather events occur and pay out appropriate claims to help our customers and communities recover. As a result, climate risk presents challenges for the sustainability of our business – but it also creates significant opportunities. We are well-positioned to use our industry expertise to help customers, partners and communities understand and manage the changing risk environment, build resilience and navigate the just transition to a low carbon economy.

Trust and transparency

Erosion of confidence or trust in institutions due to fraud, corruption, or other dishonest behaviour.

Building trust and maintaining transparency fosters strong and enduring customer relationships. A transparent approach to business practices supports the perception of IAG as reliable and trustworthy, with the potential to attract more customers and business partners.