IAG New Zealand all set with FY24 plans

IAG New Zealand all set with FY24 plans | Insurance Business New Zealand

Insurance News

IAG New Zealand all set with FY24 plans

Chief executive talks about progress, ongoing focus, and future targets

Insurance News

By
Terry Gangcuangco

IAG New Zealand has three key priorities for the year ended June 30, 2024 (FY24), as chief executive Amanda Whiting (pictured) outlined while talking about the insurer’s progress in FY23.

During IAG’s Investor Day, the NZ CEO noted: “In FY23, we focussed on simplifying and automating where possible, and we’re on track to reduce manual workload by 7,000 hours. And we’re continuing to decommission products. In FY24… we’ll start to invest in a new commercial platform, which will significantly increase the levels of automation, deliver improved underwriting and pricing, and enable more efficient broker connectivity.”

According to Whiting, less than 10% of IAG New Zealand’s SME business is currently automated. The target, moving forward, is more than 80%. For larger businesses and corporates with more complex needs, the chief executive said the company continues to deliver what she described as a high-touch service while building strong tripartite relationships with the broker and the customer.

“One of the ways in which we do that is through our value-add risk advisory services,” stated the chief executive. “These services give us a seat at the table outside of renewal time. So, we can sit down with our customer and the broker and talk about how we assist them to reduce risk.”

Intermediated brand NZI, for instance, has a fleet fit programme that spans 14 different product offerings that can be tailored to help commercial motor policyholders reduce the likelihood of a claim.

“Our assurance services really move that conversation with our customers away from one of price to one of value,” asserted Whiting. “And we’re seeing great results from that programme. In fact, people who have that fleet fit programme have a retention rate of 96%. So, it’s a true win-win for everyone.”

Retention rates for direct brands AMI and State, meanwhile, stand at 92%.

Greater digitisation and supply chain benefits

Part of IAG New Zealand’s ongoing focus is enhancing processes, both internal and customer-facing ones.

“We’ve been tightly managing admin costs, and wage inflation has largely been offset through those efficiency and automation initiatives,” Whiting told investors. “And we’re paying really close attention to affordability for our customers.

“In claims, we’re focussed on straight-through processing and automation, and we want to make it easy for our customers… Greater digitisation is also driving benefits for our customers and our cost profile. We’ve seen a 12% uplift in our sales through our digital channels for our direct brands. And we launched broker connectivity with our largest personal lines broker this year.”

The IAG NZ boss added that its claims journey will be optimised through increased use of artificial intelligence in FY24 while securing more volume benefits in the insurer’s supply chain.

“Part of the claims strategy has been to bring in-house the key parts of the value chain,” Whiting said. “We want to reduce costs, we want to use our scale effectively to drive volume benefits, and we want to enable investment in new technologies and innovation and, of course, to optimise the customer experience.

“Last year, we acquired 100% of First Rescue, which is a roadside assistance business, and it provides customers with road service as well as towing services. We’re currently integrating that to create an Uber-style experience where you can book and track the arrival of the roadside rescue vehicle. Repairhub is another fantastic example. The cost to repair is 20% lower than external market providers.”

The CEO shared that, aside from rolling out three more Repairhub sites, IAG NZ will also start migrating direct customers on to its new enterprise policy platform.

“This is a really huge opportunity for us,” declared Whiting. “In addition to driving operational efficiencies, the new platform is going to enable improved pricing for peril risks. But more importantly, we’ll create a simpler experience for our customers.

“In claims, we’ve seen and are experiencing the benefits that we can derive from being just on that one platform. And I’m thrilled that we’re on the cusp of extending those benefits to customers through our sales and service functions.”

For Whiting’s camp, it’s about building the foundations on which they can grow.

“In FY24, we have three key priorities,” she said. “The first is to ensure that we deliver margin and retain our customers. The second is to launch our enterprise platform for our direct brands in New Zealand, and to commence the development of our new commercial platform. And the third is transformation.

“To maximise the benefits from the new technology, we’re going to need to deliver new digital and data capabilities, adopt new processes, and create a more customer-centric organisation. Once the enterprise platform is live, then we will actively pursue customer growth.”

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