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Impacts of Globalisation on IAG ( Insurance Australia Group)

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Date added: 17-06-26

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Name of the Business Organization

IAG ( Insurance Australia Group)


IAG-Approved-Repairer-Logos-Small.jpg Figure 1

Nature of Organization and legal identity

IAG (Insurance Australia Group Limited) is a parent company of general Insurance group which have been expanded in Australia , New Zealand , Thailand and Vietnam, which operates under different brand names in each of the respective countries. For Instance, It operates by the brand name NRMA Insurance, SGIO and SGIC in New South Wales, South Australia and Western Australia, While operating by the brand name as NZI, STATE Insurance and AMI in New Zeland (About IAG). IAG also has a 26% joint venture with SBI general Insurance Company which is owned by the State Bank of India (SBI), which is India's largest bank. (IAG (Insurance Australia Group)) NRMA Insurance functions in NSW, QLD, ACT and TAS as part of Insurance Australia Group (IAG). IAG is a fully diversified insurance group with its boundaries stretched throughout Australia, New Zealand, Asia and the United Kingdom. It underwrites around $7.8 billion of insurance premiums each year and employs more than 13,000 people.

Products and Services

IAG is the organisation behind some of the most famous, trusted and and respected Insurance brands existing globally. Since in our research proposal we would be focussing on STATE insurance, as IAG operates as STATE insurance in New Zealand, the range of producst offered by State Insurance are Car, Home and Contents Insurance, Travel Insurance , they also offer peace of mind to fellow kiwi citizen for niche products such as Life Insurance, Caravan, Boat , Trailer, Vintage vehicles and Business Insurance. (State Insurance)


Globalization is the term in which multi national companys or organizations would emerge on an international scale, wherein there is exchange and influence of opinions, ideas and other aspects of business development shared globally.


Concentration and centralization processes:

The formation of agreement between insurance and reinsurance companies; fusion of banks, insurance companies, and credit companies to form transnational financial groups; mergers between small and medium insurance companies to form large international insurance companies, IAG collaberated with many small sized insurance company in 1981, IAG operated as NRMA in new south wales and was considered to be the largest operating home and contents insurance company. in 1998 IAG extented its branches to southern australia and western australia acting as SGIO and SGIC. In 2001 IAG aquired state insurance, while in 2005 IAG expanded its insurance markets in asia, thailand and malaysia. the main idea of there aquisitions was to share the risk and balancing the overall risk it insures. This way it could lower down the insurance premiums and can make insurances affordable.

free trade

From a global perspective, it is clear that the benefits of free trade are significant for consumers and organisations such as IAG. Whilst some industries move to capitalise on the cheap labour in the developing world, new industries with a focus on innovation and technology are created. The increase in free trade around the world will continue to drive growth in the global economy into the future. Since IAG evolved throughout the world it could keep the premiums as low as possible.


Nobody knows what is going to happen in the next few moments. Accidents, illness and getting old are some of the last things that come to our mind. When these things do happen, it is important to have an insurance that can financially protect our home, business and family. GFS recommends to all the customers to have adequate and continuous insurance cover to protect both the property and the risk to the equity that may occur in the event of loss of life and/or income, and/or any illness which requires consultation with a specialist, hospitalization, or surgery. We can assist you in selecting the most appropriate policy to protect you, your family, and your assets. We also help our customers at the time of claim so that their claim can be settled as per their policy terms and conditions quickly

FDI-foreign direct investment

The budget has brought good news for the insurance sector in India which has struggled to flourish and consolidate because ofthe lack of adequate investments. The insurance sector in India is investment starved. Increasing the composite FDI cap in the sector from 26% to 49% and offering full management control through the Foreign Investment Promotion Board (or FIPB) route will pave the way for entire sector to expand. The FIPB is a government body that offers a single window clearance for proposals on FDI in India that aren’t allowed access through the automatic route. Major U.S. insurance companies already have a good presence in India. Insurance companies like Metlife (MET), Prudential (PUK) and American International Group (AIG) have strategic partnerships or joint ventures with Indian companies. PNB-MetLife is a joint venture between MetLife and India’s Punjab National Bank (or PNB) in majority stake along with other investors. ICICI-Prudential is a 26% to 74% joint venture between Prudential and India’s ICICI Bank (IBN). Tata-AIG General Insurance Company Limited is another such 26% to 74% joint venture between AIG and India’s Tata Group. The move would attract more foreign players to enter the Indian market where the population of the uninsured is over 500 millio


IAG's main business objective is at the heart of how it views sustainability. The purpose is to help people to manage risk and recover from the hardship of unexpected loss. IAG's approach on business sustainability is categorised in to the following factors:

Economic Sustainability

IAG IAG emerged with the brand name of NRMA in new south wales in australia, and the history backs to 1921, it slowly emerged throughout australia. In 2001 IAG aquired New zealand's largest insurance company which was State insurance, and slowly and steadily in march IAG completed the purchase of AMI insurance. IAG acting as state insurance in new zealand contributes to the economy in many ways. IAG employs more than 3,000 staff throughout the country. the people who are part of the organisation are active and are a major purchaser of goods and services, supporting hundreds of other businesses in New Zealand, including panel beaters, builders and retailers. Some of IAG’s investment it targets opportunities to support environmental, social and governance issues


IAG's relationship with their customers is first and foremost about paying claims. In fact, IAG pays out around NZD$700m in claims annually. In doing so the organisation is focused on acting promptly, effectively and justly in the face of adversity to help our customers when they need them the most. However, IAG believes that their relationship with the customers the people extends beyond just paying claims. The value that IAG delivers to their customers includes helping them to reduce risk and avoid unnecessary hardships, keeping insurance available and affordable so that they are protected in their time of need, and anticipating and responding to their changing needs. IAG gets them back on the road or back to work, or replace their goods or assets. This means keeping customers at the heart of their operational decisions


IAG recognises the value of our relationship with the natural environment as being a vital aspect of our business sustainability. IAG is managing not only its impact on the environment but also the impact of the environment on the business. Because insurance is all about unforseen events and providing peace of mind. Increases in the severity and frequency of weather events represent significant risks to the business, which would also impact the customers and the communities. That’s why for some years IAG has advocated the need to develop a more resilient built environment to reduce communities’ vulnerability. IAG is collaborating with its partners to improve their collective understanding of the important relationship between the environment and the insurance industry and also how to effectively reduce the impact of catastrophes when they occur. Meanwhile we continue to adapt to a low carbon future. This is about investing in responsible environmental management across our operations, including how we operate and manage our use of consumables and utilities, and working with our suppliers to achieve more sustainable outcomes for our business, customers, partners and communities. This has helped us to be carbon neutral since 2012


IAG recognises the fundamental role that it plays helping New Zealanders to manage risk, and to recover from the hardship of unexpected loss. IAG works with many well-respected organisations to promote risk identification, awareness, prevention, reduction and adaptation. As a company it is increasing its activities with customers and communities to improve risk management - in the home, on the road, and in the natural environment. By harnessing insights and partnering wisely, it is evolving its understanding as to how it can enable and protect the community. This involves identifying adaptation measures and resilience building. Communities which actively plan to manage risks can ultimately recover from the unexpected loss due to any natural disaster more quickly. All of this helps to keep insurance more affordable and accessible for all.
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