Insurance Australia : Corporate Governance Statement 2022 (2.11 MB)

Corporate Governance Statement 2022

Insurance Australia Group Limited

This release has been authorised by the Board of Insurance Australia Group Limited 12 August 2022

ABN 60 090 739 923

Connecting our people to purpose supports the role we play in creating safer and more resilient communities.

CONTENTS

Governance at IAG	2
Understanding our customers' needs	4
Culture and governance	5
Purpose, culture and our
customers' experience	7
Managing risk	14

Sustainability/ESG	16
Continuous disclosure and
shareholder engagement	17
Remuneration and performance	18
Diversity, Inclusion and Belonging	19
Reviewing our approach to governance	21

1

Governance at IAG

At IAG, we believe governance provides the framework that allows us to operate our business to deliver on our purpose and our strategy.

At IAG, this framework includes:

• our purpose and strategy, which provide clarity on the value we bring and our objectives;
• our focus on our customers through our policies, procedures, models, programs and forums;
• the way we apply our Values and Behaviours (The IAG Way) and the Code of Ethics & Conduct to guide our people to behave ethically and legally;
• the many policies and practices we have in place, and the activities we encourage (such as community activity), to create a culture which enables our people to strive to deliver personalised service when customers need it most;
• our remuneration policies and practices;
• our risk management framework, policies and practices;
• the way we report to all our stakeholders, including our shareholders, the Australian Securities Exchange (ASX) and our people; and
• our continuous improvement approach, including our commitment to examine and strengthen our governance.

Our purpose

IAG exists to 'make your world a safer place'.

From our origins in the 1920s as the insurance business of the National Roads and Motorists' Association (NRMA), to our CGU Insurance and New Zealand businesses which have provided insurance services for over 160 years, we have a long and proud history of building trusted relationships with customers and communities.

IAG is the largest general insurer in Australia and New Zealand, with more than 8.5 million customers. We recognise that supporting communities is core to our role as an insurer and goes to the heart of making your world a safer place. We also aim for continuous improvement in customer service, so we can be there when people need us most.

Our purpose drives us to work collaboratively with the community to understand, reduce and manage or avoid risk, and to improve preparedness and build resilience. It delivers better outcomes for the community, and ultimately results in fewer claims and lower costs for our business.

By broadening our approach from helping individual customers who have suffered loss, to mitigating the risk of loss for people in the wider community, we also become a more sustainable business over the long term.

Our purpose is the reason we exist. It keeps us focused on delivering our strategy for our people, customers and communities. It unifies us, helps us to make the right decisions, and motivates us build a stronger and more resilient business.

Focused on our strategic direction

Our long-term financial objective remains the delivery of top quartile Total Shareholder Return, with a sustainable growth profile. To realise this, IAG has set its strategy to 'create a stronger, more resilient IAG'. We are applying greater focus, adapting our business model, and playing to our strengths to capitalise on trends shaping the operating environment.

Four strategic pillars provide this focus, inform IAG's operating model, and underpin our three-to-five-year strategy:

Grow with our customers

• We will grow as Australians and New Zealanders grow by delivering unparalleled personalised service when customers need it most,
• We will strengthen our brands to meet the evolving needs of customers and enable the next wave of growth in small businesses across Australia and New Zealand, and
• We will increase our customer reach to make the world safer for more Australians and New Zealanders.

Build better businesses

• We will help Australian and New Zealand businesses by continuing to focus on underwriting expertise, active portfolio management and pricing excellence, and
• We will evolve by investing in our core competencies, delivering consistent high-quality returns to shareholders, and enhancing our competitive advantage.

Create value through digital

• We will create connected digital customer experiences that seamlessly assist and reward customers as they unlock the value of IAG's network, and
• We will transform the customer experience while re-architecting core platforms
  and using intelligent automation to capture value.

Manage our risks

• We will manage the risks in our own business to better manage the risks in our customers' lives by building a strong, active risk culture and meeting our obligations to the communities we serve,
• We will invest in process, capability, infrastructure and operational excellence to create a stable, scalable and efficient business, and
• We will continue to be innovative and strengthen our capital platform, ensuring our customers are appropriately supported by our financial strength.

Our strategy balances strengthening the fundamentals of insurance with the evolution required to be a digital leader. It aims to deliver a stronger, more resilient organisation with increased customer reach.

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