In present era, there are many firms who are operating business in insurance industry. There are wide range of strategies adopted by them in order to accomplish success in the market. The present research is based on Insurance Australia group which headquarter is situated in Australia and it operates business in 7 countries in all over the world. It provides services to both business insurance as well as consumer in various market segments that are home insurance, vehicle insurance and compulsory third-party insurance. Under this firm there are total 10 brands and its underwriter are over $11.4 billion. Main markets of the firm are in New Zealand and Australia along with joint ventures with other insurance firm in India and Malaysia. The present report will cover, various strategies deployed by Insurance Australia group for accomplishing success. Along with this, environmental analysis will be conducted for identifying factor that are affecting business operations (Gattorna, 2017).
Insurance Australia group vision is to create Asia Pacific’s most lover, most inventive and most successful insurer. It focusses on delivering great customer experiencing through leveraging our market leadership and creating value for customers, people and shareholders.
Key principles of Insurance Australia group limited are as follows:
Paying claims: Customer wants that their claim will be paid which is the main focus of insurance company. It emphasis on providing help beyond the claim and differentiating themselves from others.
Understanding and pricing risk: They keep their products on risk before they know about their actual cost. It is essential for us to expert to assess and pricing risk in systematic and fair manner.
Managing cost: The operating cost of the firm is factored in premium price so company is enough efficient. They are responsible for keeping price as per the cost policy (Renko, Tarabishy and Brännback, 2015).
Reducing risk: The company do not want to face any type of risk so they try to reduce environmental risks, home, crime etc.
Main strategy of the firm is to optimise the core insurance business through creating future growth options (Zhang, Ahammad and Wang, 2015).
Strategic priorities: The firm has identified three strategic proprieties, supported by organisation capabilities, for delivering its strategies.
Customer: It connect with customers and automated process which enable them to target more customers on time. Insurance Australia group Limited focus on innovation approach which provide them capability of thinking and differentiating them from others.
Simplification: The firm focus on reducing organisational complexity through using technology platforms, simplifying the process and systems.
There have been many criticisms of the business practices that company has pursued in recent years. IAG has welcomed the NSW government’s decision to help detect compulsory third party green slip fraud by allocating $1.2 million on a CTP fraud prevention framework. Largest monitoring company NRMA which is now called as Insurance Australia group. The firm appear to end relationship. Both the organisation has separated from in the biggest demutualisation. The formal director of NRMA has sent a threating letter to IAG related to the sale on the quite of the NRMA Shareholding in IAG. Prior to demutualisation the firm is used to the subsidies its member through its insurance arm which was not possible. Due to fraud there relationship was get hampered. Due to the use of less effective strategies company faced issues in the market. In order to avoid any type of criticism IAG need to follow all the ethical guideline and all the strategies need without cheating any of its shareholders, customers etc (Bamiatzi, Jones, and Nikolopoulos, 2016).
There are many factors which are impact the firm external environment which are worth considering. PESTLE analysis helps in identifying those factors which are impacting the firm directly and indirectly. Here below are the factors:
Political factor: Insurance Australia group company operates its business in different countries where various geo-political actions are taken in the markets. These are basically Asian Market in which Insurance Australia group operates its business. Political issues faced by the firm is related to the uprising which occurred in Thailand in last few years. They keep power to impact the firm’s operations and overall profitability (Vermeeren, Kuipers and Steijn, 2014). Therefore, it is important for the firm to consider the impact of such issues at the time of formulating strategies.
Economic factors: From last few years, global economy is suffering a slowdown which lead to affect the growth of Insurance Australia group. This downturn can put adverse impact on the investment income which company may take to enjoy. It is consequently, careful that IAG should keep methodologies which consider economic environment as a risky factors.
Social factors. While considering social factors there are two main levels of issues that can impact the operations of Insurance Australia group. One of is the change in the client base of the firm. Therefore, firm need to shift its focus from the target market for including the younger population. Another social factor the use of social media toll which firm need to consider. It is opposed to the previous practice of using traditional media sources for instance television media or magazine.
Technological factors: Company use social media which is also considered as a technological issue. It is related to the enhancing the technological arena (Herrmann and Felfe, 2014). These changes increase as because of the spreading awareness of social media as a communication tool. Social media as marketing tool is used by most of the firm in order to reach large number of customers and grab their attention.
Environmental factor: For Insurance Australia group it is important to focus on environmental aspects. It is because these are the areas of unfavourable weather which have power to enhance pay-outs, which they need to deal with losses steaming from natural calamities. Insurance Australia group is an insurance company which also insured against whether damage. These lead to have impact on the causing of a great deal with the damage in cases where they occur.
Legal factors: There are various companies in which firm operates its business. It is essential for the firm to follow all the rules and regulations made by firm. One of the challenge which company face related to law is related to the operations in different markets (Michaelis, Stegmaier. and Sonntag, 2010).
SWOT analysis tool
Swot analysis is known as the important strategic tool which can be used by Insurance Australia group limited managers for carrying out situational analysis. It is one of the effective technique for evaluating the strength, weakness and opportunities of the firm.
Organisation culture of Insurance Australia group
The culture of the firm leads to make company what is it. It is total of the attitude m beliefs, customers and different on group of people from another. The culture of the firm is not different from the ethnic culture. Company fall between two culture that are strong and weak. In the strong employees are provided power to make decision and understand company goals. It makes employees feel respected toward the firm. On the other side, in a weak organisational culture firm feel demotivated and less valued. There are four type of organisation culture which can be adopted by the firm such as clan, market, adhocracy and hierarchy. Every firm has different culture and all of them are effective enough. Insurance Australia group company is operating its business in insurance industry. The firm has adopted the market culture as because it builds upon the dynamic of competition and accomplishing concrete results. Customers focus on goal oriented with the leaders who are tough and demanding. The form is entitled by the common goal in order to success and beat its competitors. One of the main value drivers of IAG is profitability and market share. This culture is adopted at the time when company focus on result based as because all the things is to be done on time. Employees who are working in this firm are focused on goal. One of the important aspect of the firm to be successful and good reputation in the market. All the organisational cultures lead to promote some behaviours and inhibit others. Get the best online HND Assignment help from experts.
Leadership style of Insurance Australia group
There are various types of leadership style which can be adopted by the firm in respect to accomplish success. Firm choose leadership style according to their way of working. Insurance Australia group has adopted democratic leadership style. It is one of the effective leadership style in which leader work with employees and involve them in decision making process. One of the most unique feature of this leadership style is that it communication in it is active flow from upward to downward. Employees are free to work in their own way. The leader delegate task to its employee according to their skills and ability. Further, all employees help each other in their work due to which goal can accomplished on time. Leader of Insurance Australia group try to encourage creativity and employees are highly engaged in projects and decision due to this reason team member are highly satisfied from their job. However, with advantage there are some drawback of the democratic leadership style. At the time of making quick decision this style is not effective enough. However, in different situation company also change its leadership styles. Sometime it adopt autocratic leadership style. It can be convincing in little social occasions where organization is deficient. Have you anytime worked with a social event of understudies or partners on an endeavour that got destroyed by poor affiliation, a nonattendance of activity and an inability to set due dates? Given this is valid, the chances are that your survey or business execution continued in this way (Bamiatzi, Jones, . and Nikolopoulos, 2016). In such conditions, a strong pioneer who utilizes a tyrannical style can accept accountability of the get-together, apportion endeavours to different people, and develop solid due dates for undertakings to be finished.
These sorts of social event wanders tend to work better when one individual is either distributed the piece of pioneer or just goes up against the action in solitude (Vermeeren, Kuipers and Steijn, 2014). By setting clear parts, doling out errands, and working up due dates, the social occasion will presumably total the endeavor on time and with everyone giving proportional responsibilities.
Recommendation and conclusion
From the above report it is concluded that for an organisation to accomplish success it is important to use wide range of strategies. Company keep their products on risk before they know about their actual cost. It is essential for us to expert to assess and pricing risk in systematic and fair manner. External and internal analysis help company in gaining knowledge related to the factors which can affect them directly. Company operates its business in different countries therefore political factor can directly affect them due to which they may face difficulties while carrying out business activities. In order to accomplish success, it is important for the firm to provide innovative products and services to its customers. Further, it is concluded that, there are different types of operations which are carried out by the firm. It is important to adopt leadership style in order to lead employees. Democratic leadership style plays significant role in respect to direct employees and motivate them to work hard for the firm.
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