Insurance Australia Group Ltd · ASX:IAG
Insurance Australia — Morgan Stanley Insurance Forum (March 2012)
14 slides from Insurance Australia's conference presentation, Mar 15, 2012
Slide 1: Presentation to the Morgan Stanley Insurance Forum (cover letter)
15 March 2012 For personal use only Manager, Company Announcement Office ASX Limited Level 4, Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam Presentation to the Morgan Stanley Insurance Forum Please find attached a copy of a presentation entitled Looking to the Future – Growing Aust
Slide 2: Looking to the future: growing Australia Direct
For personal use only Looking to the future: growing Australia Direct Andy Cornish, CEO, Australia Direct Insurance Australia Group 15 March 2012
Slide 3: Australia Direct's strategy
Australia Direct’s strategy For personal use only CUSTOMER INSIGHTS THE RIGHT PRICE Superior customer A world class customer knowledge driving our Insurance that’s based pricing and risk service and product Commercialised easy to have and risk selection assessment capability development use and pric
Slide 4: Delivering results
Delivering results Since 2009 Australia Direct has consistently delivered strong results, setting a platform for further profitable growth For personal use only $m GWP Administration Ratio (ex-Levies) 4,200 16% 4,000 14% 3,800 12% 3,600 10% 8% 3,400 6% 3,200 4% 3,000 2% FY09 FY10 FY11 1H12* 0% * Ann
Slide 5: Customers have the biggest say in shaping the future of Australian insurance
Customers have the biggest say in shaping the future of the Australian insurance industry For personal use only Within a set of companies I know Only 12% of and trust, I buy the cheapest customers buy on price alone I stick to a company I know and trust Customers want Customers’ Brand/Price I choose
Slide 6: Customer insights and implications
Customer insights and implications… For personal use only 1. Risk selection, pricing and affordability 2. The importance of trust in the claims experience 3. The role of multi-channel distribution 5
Slide 7: Risk selection, pricing and affordability
1. Risk selection, pricing and affordability Pricing capability is increasing…affordability and insurer credibility are emerging issues 1 Affordability For personal use only • Frequency and severity of events lead to reinsurance increases • Pressure to offer relevant cover – eg flood • Several other
Slide 8: Australia Direct's pricing has become sharper and more granular
1. Australia Direct’s pricing has become sharper and more granular We are able to leverage our understanding of our customers to price while maintaining an eye on profitability Our pricing journey For personal use only • One pricing engine for core products Insurers with no geo-coding Australia Dire
Slide 9: The importance of trust in the claims experience
2. The importance of trust in the claims experience: The right claims model is critical to delivering the insurance promise consistently and to underpin a competitive cost base For personal use only Customer Expectations^ Cost Base^^ • “Had an accident and they took • On average 70-80c of every over
Slide 10: Australia Direct's claims model is delivering cost efficient, quality and timely claim experiences
2. Australia Direct’s claims model is delivering cost efficient, quality and timely claim experiences Our quality repair framework builds on our current model and is delivering several benefits Advancing our Quality Repair Framework For personal use only • Partnering with repairers: – Volume in retu
Slide 11: The role of multi-channel distribution
3. The role of multi-channel distribution Despite the growth in the internet, customers prefer telephone and branches, and to channel ‘graze’ through the insurance lifecycle No. of interaction points consumers used for searching For personal use only 5 or more channels for searching 1 channel Consum
Slide 12: Australia Direct's integrated multi-channel model meets customers' desire for choice
3. Australia Direct’s integrated multi-channel model meets customers’ desire for choice Australia Direct will continue to enhance its integrated multi-channel capability to support customers’ needs and enhance business profitability For personal use only Today Australia Direct’s integrated Next Step
Slide 13: Australia Direct's strategy will ensure the business continues to deliver
Australia Direct’s strategy will ensure the business continues to deliver Customer insights will continually improve service and products. Consistent execution builds trust, reduces cost and ensures we offer value for money For personal use only CUSTOMER INSIGHTS THE RIGHT PRICE Superior customer A
Slide 14: Questions
For personal use only Questions 13
Insurance Australia Group — Morgan Stanley Insurance Forum (March 2012) on 6ix