Shared Value
in Action

It is critical we invest in partnerships and projects that balance the needs of all stakeholders, including customer, business and community impacts.


Getting this right is not always easy. We are developing tools to enable us to measure shared value creation and help us prioritise our activities. We recognise that we cannot act on every opportunity, and we cannot work in isolation, so we are proud to collaborate with partners who are equally committed to creating safer, stronger and more confident communities. Here are some examples of where we are working together to make a difference.

Microinsurance at IAG Asia

People on low incomes are more vulnerable to the effects of natural perils, road accidents, illness and injury. Microinsurance offers protection for these people in emerging markets, with simple processes and affordable, easy to understand products. The World Bank data shows that globally, 3.9 billion people are earning less than US$4 a day; this is more than half of the world’s population that would benefit from access to microinsurance.

In keeping with our commitment to improving insurance accessibility and affordability in Asia, IAG provides a range of microinsurance products tailored to our markets in Thailand, Vietnam and India. Our experience tells us that for products to be profitable and sustainable the customer experience needs to be convenient, with claims easily managed and paid.

Products offered through our Bancassurance and Agent channels include personal accident, home fire protection, motorbike total loss and theft, surgery and hospital cash and critical illness.

To date we have sold more than 17.7 million policies ranging from a cost of A$0.70 to A$4.90. The next stage for our Asia microinsurance market is to extend the distribution network to other channels and launch in Indonesia.

IAG Reconciliation Action Plan


IAG has an Indigenous Engagement Strategy with a commitment to supporting reconciliation in Australia. Through our Reconciliation Action Plan we support a number of important initiatives to improve education, employment and community outcomes for indigenous Australians. These initiatives include support for CareerTrackers, with 22 university interns completing secondments across the business, and partnering with the Australian Indigenous Mentoring Experience to support secondary school students as they transition to tertiary education and careers. IAG has supported the transition of the skills and expertise of our people to indigenous organisations with eight employees placed on six-week Jawun secondments. IAG also sponsored the Partnership Award for the Supply Nation Awards and Dinner.

Working together to make communities safer


IAG is a founding member of the Australian Business Roundtable for Disaster Resilience & Safer Communities (ABR).

In 2014 the ABR launched its second research paper – Building an Open Platform for Natural Disaster Resilience Decisions. This research also formed the basis for IAG and ABR submissions to the Australian Government Productivity Commission Inquiry into Natural Disaster Funding Arrangements. In recognition of this important work, the ABR was awarded the Certificate of Distinction at the 2015 United Nations Sasakawa Awards for Disaster Risk Reduction, the first private sector organisation in the awards’ 30-year history to be so recognised. In 2015, IAG also committed to the Sendai Framework for Disaster Risk Reduction.

Global Resilience Project


The IAG-led Global Resilience Project (GRP) is the key part of our commitment to the UN Principles for Sustainable Insurance Initiative. The Global Risk Map, the second phase of the GRP, was launched in New York in June 2015 with widespread endorsement from the UN, the disaster prevention community and media. The interactive map covers major natural disasters over the past 115 years; the social and economic devastation caused by cyclones, floods and earthquakes; and identifies the most vulnerable regions/countries. The third phase of the GRP focuses on effective approaches for global outreach and stakeholder advocacy to support cost-effective investments in pre-disaster resilience, creating opportunities for more affordable, accessible and scalable insurance solutions.


  IAG Research Centre

Driving safety and security for over 20 years

The Research Centre pioneered IAG’s shared value approach with its extensive work to improve car security. During the late 1980s, car theft sky-rocketed in Australia, with Sydney considered the car theft capital of the world. Not only was the rate of theft socially disruptive (a car was stolen every six minutes), but it was driving up insurance premiums on many popular cars to unaffordable levels. Our Research Centre created Australia’s first car security rating system, which scored a vehicle’s theft resistance, and shared this information with manufacturers and consumers. This advocacy led to our founding involvement in the National Motor Vehicle Theft Reduction Council, the national sharing of theft data, the creation of a national written-off vehicle register and the mandating of immobilisers. Today, car theft figures are less than half what they were 20 years ago.

Road safety has also been a critical focus for the Research Centre. Between 2002 and 2007, the Research Centre delivered the 101 Accident Blackspots program in NSW, identifying the worst intersections for collisions. Public awareness led to the installation of traffic lights at the number one blackspot in 2002 – the then-notorious five-ways roundabout at Miranda – with an estimated 80% drop in collisions. Our research also drove safety improvements to an entrance ramp on the M4 at Silverwater, reducing the number of collisions at this blackspot by around 300 per year and saving an estimated $600,000 per year in claim costs since 2005.

IMAGE for case STUDY

To learn more visit www.iag.com.au/shared-value/our-stories

© 2015 Insurance Australia Group Limited ABN 60 090 739 923