The Buzz was launched as IAG's internet insurer on 15 May 2009, initially focusing on car insurance in Australia. RACV will have a 30% interest in The Buzz subject to a joint venture agreement being finalised by the end of calendar 2009.

The aim is for The Buzz to be known as Australia's preeminent end to end online insurer. We will do this by:

• delivering a lower cost operating model; and
• meeting the needs of customers.

In the lead up to launching The Buzz, we engaged the broader community in the design process in, what we believe was, an industry first. We did this by holding customer insight sessions, followed by the creation of an online insurance community through the website www.myinsuranceideas.com.au. This site allowed us to poll and survey customers as the design progressed and our blog was an important vehicle for customers to generate and submit ideas. More than 3,500 members of the community generated over 1,000 ideas.

Through this co-creation with the community, we developed a customer driven competitive advantage based on the following principles:

• flexible products—car insurance with choice, flexibility and control for the customer on cover, excess and agreed value;
• simple and efficient claims process—online lodgement and tracking, eGlass and internet connectivity to our hire car partner;
• competent, knowledgeable staff—a highly trained and engaged team driven by innovation and customer feedback. The small customer service team is focused on allowing the customers to communicate with us through online chat;
• making purchasing simple on a fast, user friendly secure website—quote available in under 60 seconds, with an independently assessed usability score of 82%.¹ Key focus on security, engaging design, plain language and ease;
• access to help when it is needed—the business operates 24 hours a day, seven days a week with an online question and answer section; and
• competitive, transparent pricing—each part of the insurance cover transparently priced, allowing the customer to have more control over the price they will pay, as they can pick and choose types of cover, level of excess and the insured value of their car.

We are excited by the positive response to this business in its first few months and look forward to reporting to you on our results in next year's annual review.

• 1Hyro Report April 2009. Heuristic usability assessment.