Our partners and community

Principles for Sustainable Insurance TCFD pilot

Description: A partnership involving the world’s largest insurers — representing around 10% of world premium and US$5tn in AUM — to develop a standard approach for climate risk disclosure for the insurance industry.

Objectives: 

- Define climate scenarios to model.
- Develop risk and opportunity heat maps from those scenarios.
- Demonstrate financial and qualitative impacts of climate change on the insurance business.
- Develop the modelling and assessment approach.

IAG activities: IAG, through its work on physical risks led by the Natural Perils team, contributed to the modelling and development of industry-appropriate climate-related benchmarks. The findings were published in Insuring the climate transition, enhancing the insurance industry’s assessment of climate change futures released in January 2021.

US National Center for Atmospheric Research (NCAR)

Description: NCAR works with private and public partnerships to meet the demands of scientific challenges. NCAR is an international leader in climate science by improving our understanding of changes to climate and severe weather under past, present and future scenarios.

Objectives: IAG and NCAR work on joint initiatives to apply the latest climate modelling to better understand how weather events like tropical cyclones, hailstorms and rainfall, will change in the future, and publish findings through peer-reviewed journal articles in 2020.

IAG activities: In November 2020 IAG released the second edition of Severe Weather in a Changing Climate in partnership with NCAR. The report builds on the first report which was released in 2019 by incorporating the latest science and feedback and contribution from the local science industry and abroad. It discusses the changing risk of multiple types of natural disasters impacting Australia. In contributing to the report, IAG made a deliberate decision to publish its internal research to help other stakeholders across our industry better understand physical climate risk.

The Geneva Association

Description: As the leading international think tank of the insurance industry, The Geneva Association has prioritised Climate Change and Emerging Environmental Topics as one of seven research topics.

Objectives: To identify the role insurers and other stakeholders can play to help mitigate and adapt to the challenges of climate change.

IAG activities: IAG collaborated with the Geneva Association on a new Flood Risk Management in Australia report, which was part of the Building Flood Resilience in a Changing Climate series. The report noted the high levels of insurance penetration but also called for flood management funding to be reallocated from response and recovery to mitigation and resilience.

Australian Sustainable Finance Institute

Description: A collaboration formed to help shape an Australian economy that prioritises human well-being, social equity and environmental protection, while underpinning financial system resilience and stability.

Objectives:

- Mobilise capital to deliver on UNSDGs.
- Enhance sustainability and resilience in the financial markets.
- Incorporate environmental and social risks into financial decision making.
- Deliver a financial system that meets community and consumer expectations.

IAG activities: This year we maintained our involvement in the Australian Sustainable Finance Institute (ASFI), including our ongoing co-chair role and contributing to the development of a Roadmap which was released in November 2020 and has a strong focus on climate change. To support the implementation of the Roadmap, IAG has become the first founding member of the newly created permanent ASFI body created to drive the implementation of the Roadmap. In addition, our CFO Michelle McPherson will join the newly created permanent Board.

New Zealand Sustainable Finance Forum

Description: An initiative of The Aotearoa Circle, this forum was established to deliver a sustainable finance roadmap to help New Zealand shift to a financial system that supports sustainable social, environmental and economic wellbeing.

Objectives: To deliver a stable, sustainable, resilient financial system that aligns with the long-term wellbeing needs of society, the environment and the real economy.

IAG activities: IAG was actively involved in the forum, demonstrating leadership by contributing valuable knowledge, insights and capability towards addressing sustainability issues which are impacting financial systems. The Roadmap for Action was released in November 2020.

Australian Business Roundtable for Disaster Resilience & Safer Communities (ABR)

Description: The ABR was formed in 2012 by business and organisational leaders with a shared vision to ensure that communities across Australia are better able to prepare for, respond to and recover from natural hazard triggered disasters.The members are leaders of Australian Red Cross, IAG, Munich Re, Optus and Westpac Group.

Objectives: The primary objective of the ABR is to make Australian communities safer by improving disaster resilience and climate change preparedness.

Effort is focussed across three key areas:

- partnering with governments

- business action and leadership

- more resilient built environment

IAG activities: IAG is a founding member of the Australian Business Roundtable for Disaster Resilience & Safer Communities. Through the Roundtable, we work to effect change in public policy, increase investment in building safer and more resilient communities, and improve the capacity of people and businesses to better withstand future natural disasters. 

NZ Climate Leaders Coalition

Description: Launched in July 2018 to promote business leadership and collective action on the issue of climate change.

Objectives: Goal is to help NZ transition to a low emissions economy. In line with the Paris Agreement, the Coalition has pledged to keep warming below 2° and to further pursue efforts to limit temperature increase to 1.5°.

IAG activities: IAG is a founding signatory of the Coalition, working constructively with government, industry, not-for-profit groups and local communities to actively mitigate and adapt to climate change.

Insurance Council of Australia (ICA) – Climate Change Action Committee

Description: Members of the working committee, including the Chair of the Data and Knowledge sub-committee, reporting through ICA management to the Board of the ICA.

Objectives: To ensure the insurance industry demonstrates leadership by responsibly managing a climate changed future and its impact on capital.

IAG activities: As part of the committee IAG contributes to the knowledge base of climate risks and risk reduction opportunities and identifies projects to improve understanding and address gaps. This informs decisions by business, community and governments.

Sustainable Business Council (SBC) – New Zealand

Description: New Zealand’s peak sustainability membership organisation that aims to mobilise New Zealand’s most ambitious businesses to build a thriving and sustainable future for all.

Objectives: SBC is focused on three core strategic outcomes; Leadership: championing businesses to be at the forefront of environmental and social-sustainability; Climate Change: accelerating the transition to a zero carbon future where people and nature thrive; and Thriving People: growing prosperous and inclusive businesses and communities.

IAG activities: IAG is an active participant in the SBC workstreams and is promoting an increased focus on climate change adaptation within the climate change work programme.

Australian Red Cross

Description: A humanitarian aid and community services charity in Australia and an auxiliary to government.

Objectives: Seeks to support and empower people and communities in times of vulnerability. and to reduce suffering across Australia and internationally through mobilising the power of humanity.

IAG activities: IAG is a community preparedness and response partner to the Australian Red Cross, helping to motivate a change in attitudes towards disaster preparedness. 

New South Wales State Emergency Service (NSW SES)

Description: An emergency and rescue service dedicated to assisting the community. A volunteer-based organisation that provides emergency assistance to the people of NSW 24/7, 365 days a year.

Objectives: As the lead response agency across NSW for storm, flood and tsunami, the SES aims to raise awareness and increase community involvement through volunteering opportunities, encouraging preparedness, and community events.

IAG activities: IAG is active via its NRMA Insurance brand, which serves as the Services' Principal Partner. The partnership focusses on actively engaging and empowering local communities to understand their local risks and take preventative action. The NRMA Insurance Get Ready grants support local volunteers and SES units to enable their communities to better mitigate their risk.

New South Wales Rural Fire Service (NSW RFS)

Description: The lead combat agency for bush fires in NSW, and widely acknowledged as the largest volunteer fire service in the world.

Objectives: Aims to reduce fire likelihood and consequence. This involves comprehensive risk management programs to reduce bush fire hazards, reduce fire ignitions and the development of regulations for bush fire prone areas.

IAG activities: In January 2020 NRMA Insurance helped the NSW Rural Fire Service with its bushfire-fighting efforts by trialling a new biodegradable, non-toxic fire retardant via the NRMA helicopter.

GIVIT

Description: GIVIT is a national not-for-profit connecting those who have and those who need in a private and safe way.

Objectives: Aims to alleviate poverty in Australia by ensuring every community service provider has what it needs through the simple act of giving. GIVIT’s unique virtual warehouse platform eliminates the need for organisations to store, sort and dispose of unwanted items, saving valuable time and resources.

IAG activities: IAG is a national partner for GIVIT, working together to help communities recover from disasters and address the immediate needs of vulnerable groups.

James Cook University - Cyclone Testing Station

Description: Academic facility developed to minimise loss and suffering through research, testing and community education on the response of homes and other low-rise buildings to severe weather events.

Objectives: Support ongoing work such as post damage surveys, in-depth resilience analyses and development of schemes including the North Queensland Strata Title Inspection Program and QLD Government Housing Resilience Scheme to assess the resilience and reduce cyclone impacts of residential and Strata Title Properties.

IAG activities: IAG provides continued support to the JCU Cyclone Testing Station and is part of the Technical Advisory Committee.  IAG also supports the ongoing program of work investigating resilient aspects of properties.