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Insurance Australia Group SWOT and PESTLE Analysis

ID : 52872653| Feb 2023| 16 pages

COMPANY PROFILE -Insurance Australia Group

Business Sector :Insurance

Operating Geography :Australia, New Zealand

About Insurance Australia Group :

Insurance Australia Group is the parent company of a general insurance group headquartered in Sydney, Australia. The company was founded in 1920 when the National Roads and Motorists Association started offering motor insurance. It eventually evolved over the years to be renamed as Insurance Australia Group in 2002. IAG is listed on the Australian Securities Exchange and is a constituent of the S&P/ASX 50 index. The company provides insurance services under many leading brands in Australia and New Zealand like NRMA Insurance, CGU, SGIO, SGIC, Swann Insurance, WFI, NZI, State, AMI and Lumley. In March 2021, NRMA Insurance and Lifeline partnered with Australian music icon Julia Stone to help raise awareness of the ongoing mental health impact caused by the Black Summer Bushfire and the company also announced its executive appointments to support its ambition to deliver a stronger and resilient IAG. The company has 8.5 million customers. In 2020, Insurance Australia Group won the "Best Corporate Social Media Agency of the Year".
Insurance Australia Group's USP or Unique Selling Proposition lies in it being the largest general insurance company in Australia and New Zealand. The company aims to make customers’ world a better place and believes its purpose will help it become a sustainable business in the long term and deliver strong returns to shareholders.

Insurance Australia Group Revenue :


$18,895 million – FY ending 30th June, 2021 (1.7% increase YoY)
$18,576 million – FY ending 30th June, 2020

Competitive Analysis of Insurance Australia Group

SWOT
PESTLE

The SWOT analysis for Insurance Australia Group is presented below in a matrix followed by the detailed analysis report

StrengthsWeaknesses
1. Leading player with scale advantage in Australia and New Zealand
2. Strong focus on customer experience
3. Simplified, modular and low-cost operating model
4. Strong credit rating and stable outlook
1. Failure to capitalise on Asian insurance market boom
OpportunitiesThreats
1. Strategic partnerships for offering adjacent services
2. Insurtech partnerships to offer innovative products
1. Credit risk from investments, reinsurance recoveries and premium receivables
2. Inability to meet regulatory compliance obligations
3. Cyber-attacks due to rising usage of technology
4. Extreme weather conditions leading to increased claim costs
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Insurance Australia Group

Strength

1. Leading player with scale advantage in Australia and New Zealand: Insurance Australia Group Limited (IAG) is the largest general insurance company in Australia and New Zealand, underwriting almost $12 billion of premium per annum and selling insurance under many leading brands. The company has a scale advantage in terms of resources, data and Customer Labs area that provides lot of insights on business improvement. The company has built key relationships with global players which include a strategic partnership with Berkshire Hathaway, tie-up with National Roads and Motorists’ Association (NRMA), Coles Insurance and AmBank Group Malaysia.

2. Strong focus on customer experience: IAG rolled out multiple initiatives to improve customer experience. The company continued its rollout of Customer Equity Framework in FY20 by establishing the Family and Domestic Violence Policy for Australian customers in order to ensure that the staff are able to deal with customers experiencing domestic violence. The policy will be applied to the New Zealand business in FY21. Due to COVID-19, the company expanded its Customer Connections program to include virtual sessions to enable better understanding of customer expectations. In FY20, a customer research project called Imagine Better was launched to help in making informed decisions on services. In this project, an online community of 3400 customers is used to determine how the company’s offerings can be improved. There have been over 30 research studies and 10000 surveys conducted so far.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.

Weakness

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Opportunity

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Threat

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Major Competitors :

SWOT & PESTLE (combined)
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References used in Insurance Australia Group SWOT & PESTLE Analysis Report

1. Results and Reports HY 21 - https://www.iag.com.au/results-and-reports
2. Annual Review and Safer Communities Report 2020 Insurance Australia Group Limited - https://www.iag.com.au/sites/default/files/Documents/Results%20%26%20reports/2020-annual-review-safer-communities-report.pdf
3. S&P affirms IAG ratings, outlook stable - https://www.insurancenews.com.au/corporate/sp-affirms-iag-ratings-outlook-stable
4. Making the Most of Asia-Pacific’s Insurance Boom - https://www.bain.com/insights/making-the-most-of-asia-pacifics-insurance-boom/
5. Five banana skins that could trip up Australia’s insurers - https://www.pwc.com.au/insurance/insurance-matters-banana-skins-nov2019.pdf
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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Insurance Australia Group SWOT and PESTLE analysis has been conducted by Nipunn V and reviewed by senior analysts from Barakaat Consulting.

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