Insurance Australia Group Ltd · ASX:IAG
Insurance Australia — Investor Day (June 2023)
9 slides from Insurance Australia's investor day presentation, Jun 14, 2023
Slide 1: Julie Batch, Group Executive, Direct Insurance Australia
Julie Batch Group Executive, Direct Insurance Australia 02 Investor Day | 14 June 2023 Direct Insurance Australia
Slide 2: Direct Insurance Australia overview
Direct Insurance Australia overview Simplified • Strongest insurance brand in • 2nd strongest insurance brand • #1 insurance brand with consumer Brands Australia (Brand Finance) in Australia ratings of 4.7 (Trust Pilot) • #2 in financial services • 2023 Car Insurer of the year for Outstanding Value
Slide 3: Operating environment
Operating environment Increased peril claims Upward cost pressures Emerging system growth • Significant natural perils • High global inflation • Slower economic growth • High claims volumes • Global supply chain bottlenecks • Increase in population and business (e.g. new cars, parts) numbers • Reins
Slide 4: Strong action in the current environment
Strong action in the current environment To help Australians like no one else Value Growth $400m of value through claims 750k new customers by growing nationally, targeting and supply chain by FY26 younger customers and small business segments by FY26 $70m of value generated since FY22 207k addition
Slide 5: Claims cost inflation stabilising | Motor
Claims cost inflation stabilising | Motor Key trends over last 12 months • Claims volumes returned to pre-COVID-19 levels in March 2022 Motor claims inflation & premium increases • Claims inflation spiked in Aug-Oct 2022 in line with global trends 16% • Supply chain affected by decreased capacity (l
Slide 6: Property rate response
Property rate response Property inflation (non-perils) & premium increases 25% Key trends over last 12 months 20% • Significant protracted weather events 15% • Increased reinsurance cost Property • Lower frequency of non-peril claims 10% • Availability and cost of key materials improving 5% 0% Infla
Slide 7: Transforming customer experience and cost
Transforming customer experience and cost Help our customers live their life with less disruptions Proactive Here to Help, no Building more Finalised in the by nature matter where here is resilient capabilities blink of an eye Claims Tracker AI for Motor Total Loss Virtual Property Assessment Perils
Slide 8: Strengthening our customer base
Strengthening our customer base Grow across Australia • Focus on retention and risk selection for profitable growth • NRMA HelpHub is increasing customer engagement and retention • Recognising customer tenure as well as increasing products per customer NT 1 QLD • Omni-channel experience and digital
Slide 9: Conclusion
Conclusion Direct Insurance Australia Summary • Strong action in a challenging market • Strengthening performance in FY23 and beyond • Growing our existing customer base • On track to deliver our strategic ambition and goals 19 Investor Day | 14 June 2023