CREATING SHARED VALUE

SAFER

We are working to make safer workplaces, homes and roads for our employees, partners, customers and communities.

KEEPING OUR PEOPLE SAFE

The health, safety and wellbeing of our people are integral to delivering on our purpose, operating optimally and staying agile in a changing environment.

Our 2020 Work Health & Safety Strategy prioritises: psychological health; flexible and mobile workforce; emergency and security management; and physical health.

We recognise that changing work expectations and environments are increasing the levels of stress experienced by some of our employees and we are working to develop solutions to help them. We are also conscious of a link between desk-based roles and ergonomic injuries, and provide advice to help employees set up their work spaces to avoid injury.

We are aware of the need for stringent emergency management due to the rise in security events, including the risk of occupational violence. Additionally, the growing trend for flexible and mobile working means our employees are more susceptible to external risks, such as road accidents.

Our increased focus on capability, leadership and risk management is helping us to embed a culture of health and safety throughout IAG. We will leverage our Leading@IAG program to optimise ways of working, people leadership and role clarity, and our new Donesafe platform to manage health and safety risks.

We continue to use lost time injury frequency rate (LTIFR) as a performance measure, and achieved a 4% reduction in LTIFR in Australia and a 49% reduction in New Zealand over the year. Last year, we advised we were changing our focus to leading indicators such as safety culture and hazard and incident reporting. While we have not progressed as far as we would like, we are driving accountability for more active hazard identification and mitigation and are examining how to implement leading measures next year.

LOST TIME INJURY FREQUENCY RATE¹

PROTECTING OUR VULNERABLE CUSTOMERS

We recognise many of our customers are impacted by mental health and domestic and family violence, and we are using insights from the Consumer Advisory Board to better understand how we can support vulnerable customers.

We have established a dedicated working group and provided training to team leaders, claims assessors and frontline employees to help them identify and assist vulnerable customers.

USING VIRTUAL REALITY TO CONNECT WITH CUSTOMERS ABOUT HOME SAFETY

We want to engage with our customers in innovative ways, and have been experimenting with virtual reality (VR) technology to better understand renters’ and first homeowners’ risks. Our First Place VR game is designed to get people thinking differently about insurance and risk in their homes. Trials in our branches in Australia and New Zealand yielded positive results – in Australia, nearly 60% of those experiencing the technology identified a hazard in their home, and of those 26% fixed a hazard. Nearly half of those who experienced First Place are very likely to recommend an IAG brand, opening up shared value opportunities through claims reduction and revenue growth.

BUILDING RESILIENCE IN FARMING COMMUNITIES

As the market leader in the agribusiness sector, insuring around 55% of farming businesses throughout Australia, we are aware of the challenges faced by farmers and rural communities. Advances in technology and a changing commercial landscape have forced the evolution of many traditional farming roles. These pressures, combined with isolation in a remote setting, mean rural workers are at greater risk of suffering from mental health concerns.

We hosted a workshop with our partners, the National Farmers’ Federation and Lifeline, to explore the challenges that occur within remote communities and identify how we can support mental health and promote customer safety and resilience. While this workshop delivered useful insights, we recognise it is only a starting point in what is a complex social issue. We are committed to working with our partners to build on these beginnings.

WORKING WITH OUR PARTNERS TO MAKE COMMUNITIES SAFER

We continue to evolve the way we work with community partners so that we can bring our purpose to life.

This year we signed a 10-year collaborative partnership agreement with the Australian Red Cross to help communities build resilience. Our partnership, founded on a shared purpose, aims to help communities prepare for, respond to and recover from emergencies. Research from our first joint initiative, which observed how people think, feel and act in emergencies, is allowing us to co-design a digital emergency preparedness tool that will help people stay safe.

Our partnerships with the New South Wales and Queensland SES help communities reduce risks arising from natural disasters. Approximately 90% of people who saw our joint storm preparedness campaign reported taking preventative action, paving the way for a reduction in claims costs and business revenue growth.

INFORMING ROAD SAFETY RELATED TO EMERGING TRENDS

We have a long-standing commitment to support road safety research and initiatives. Improved road safety, through better road conditions, safer vehicles and good driver behaviour, delivers shared value by reducing claims while protecting communities. Over the last year, we have been actively involved in the road safety discussion related to emerging trends.

Autonomous (self-driving) vehicles have significant potential to enhance transport, mobility and road safety. We recently entered a 10-year partnership with the iMOVE Cooperative Research Centre and look forward to shaping the future of smart mobility.

To help address the increased risk from distracted driving, we are piloting an app, Safer Journeys, which rewards good driving habits with rewards. The app has been tested with our employees and is currently being trialled by IAG customers.

SAFER – Our objective	Our commitment	Measure	Progress2
Make your world a safer place	Reduce our lost time injury frequency rate (LTIFR) annually Status:	Number of lost time injuries (LTIs) per one million hours worked	4%2 reduction in Australia and 49% reduction in New Zealand in the last 12 months

¹ Data presented to reflect the LTIFR as recorded at 30 June 2017. Each year we adjust LTIFR data to reflect LTIs substantiated a er the original report date. The Australian LTIFR increased from 1.73 to 1.92 for the period 1 July 2015 to 30 June 2016.

² Last year, we stated a 29% reduction in Australia and a 29% reduction in New Zealand in the 12 months to 30 June 2016. The year-on-year reduction in Australian LTIFR for 2016 has been adjusted to a 21% reduction.

For our commitments, the following symbols illustrate progress: ACHIEVED   SIGNIFICANT PROGRESS   IN PROGRESS  SOME PROGRESS