2026-08-13 · Source: Insurance News Australia
Summary in 3 Points • IAG's gross written premium grew by 7.6% last financial year to $18.4 billion • Retail operations are expected to drive premium gains, with growth forecasted at 5%-8% this year • IAG's intermediated business faces tough market conditions and is undergoing a technology transformation --- IAG reported a 7.6% increase in gross written premium last financial year, reaching $18.4 billion, largely due to its Australian and New Zealand direct retail businesses and a 10-month contribution from RACQ Insurance. The company anticipates a 5%-8% growth in GWP this year, with mid single-digit growth expected in retail and low single-digit gains in intermediated business. CEO Nick Hawkins noted accelerated premium growth in direct retail, supported by volume and price. Meanwhile, the intermediated business, led by CGU and WFI head Jarrod Hill, is navigating competitive market conditions and investing in AI and technology transformation to improve service levels.
IAG's focus on technology transformation and AI investment could influence underwriting and claims processes in the London Market, potentially leading to more efficient operations. The competitive pricing cycle in the Australian commercial sector may offer insights into pricing strategies for similar markets in London. Additionally, the anticipated growth in retail premiums might prompt London Market insurers to explore opportunities in direct retail channels. The challenges faced by IAG's intermediated business could serve as a cautionary tale for brokers and underwriters in London, points to the importance of adapting to market conditions and technological advancements.