Insurance Australia Group: Corporate Identification, Operations, and Competitive Advantage

Running head: Strategic management
STRATEGIC MANAGEMENT
Table of Contents
Introduction................................................................................................................................2
Corporate identification.............................................................................................................3
Business operations and brands..............................................................................................3
Operations of the company conduct in Australia...................................................................4
Operation conducted in New Zealand....................................................................................5
Operation conducted in New Zealand....................................................................................5
Sources of Sustainable competitive advantage.......................................................................5
Corporate revenue centres..........................................................................................................7
Product and service lines which are creating the largest revenue..........................................7
Summary table of their revenue.................................................................................................8
Diversification of Insurance Australia Group........................................................................8
Conclusion..................................................................................................................................9
REFERENCES.........................................................................................................................11

Strategic management 1

Strategic management 2
Introduction
In this changing economy, Strategic management analysis is used by a number of
organizations for the purpose of conducting the operations of their business in effective
manner. There are number of factors which affect the operations of the business directly, and
these factors are comprised into two parts that are internal factors and external factors. It is
necessary for the company to evaluate all these factors for the purpose of ensuring effective
strategic plans and decisions. Strategic analysis is considered as the research conducted
related to the environment of the business in which organization operates and conduct its
functions. In other words, it is considered as the responsibility of the strategic planner for the
purpose of identifying the needs of their business and also for developing the plans in context
of guiding the directions to the business (Sarkis&Sundarraj, 2000).
For framing this report, Insurance Australia group (IAG) is chosen as case study, as this
company is considered as the one of the most trusted and respected insurance brands in those
regions in which company conduct its operations. Structure of this paper consists four parts
that are identification of the corporation, sources related to the sustainable competitive
advantage, corporate revenue centres, and diversification strategy of the business is defined.
Corporate identification
IAG’s businesses ensure the $11 billion of premium on annual basis, and for this purpose this
company sells insurance under different leading brands, and these brands includes NRMA
Insurance, CGU, SGIO, SGIC, Swann Insurance and WFI(Australia); NZI, State, AMI and
Lumley Insurance (New Zealand); Safety and NZI (Thailand); AAA Assurance (Vietnam);
and AsuransiParolamas (Indonesia).This company also shows interest in the general
insurance through joint ventures in two countries that is Australia and India (IAG, 2018).

Strategic management 3
(IAG, 2018)
Business operations and brands
Following are the operations of the IAG which are conducted with the help of numerous
brands:
 This company distributes its short tail personal insurance products in victoria under
the RACV brand, through the distribution relationship and guaranteeing joint venture
with the RACV. All these insurance products are distributed by the RACV products
and manufacturer of these products is the Insurance Manufacturers of Australia Pty
Limited (IMA). IAG holds 70% in the IMA and 30% of the IMA is hold by the
RACV.
 100% stake is hold by the IAG in the WFI Insurance Limited (WFI), the underwriter
of the general insurance products under the Coles Insurance brand. Distribution of
these products is done by Coles in context of the authorized representative agreement
with WFI (IAG, n.d.).
 98.6% beneficial interest is hold by the IAG under the Safety Insurance, based in
Thailand, which trades under the safety and NZI brands.
 49% of the general insurance arm of Malaysian-based AmBank Group, mGeneral
Holdings Berhad (AmGeneral) is owned by IAG, and this company conducts its trade
under the AmAssurance and Kurnia brands.
Safety
NZI
NZI
State.
AMI
Lumley Insurance
NRMA Insurance, CGU,
SGIO, SGIC, Swann
Insurance and WFI
AAA Assurance
Thailand New Zealand
AustraliaVietnam