ENGAGING OUR STAKEHOLDERS

Stakeholder	Engagement process
Customers - Personal Insurance	Our formal customer engagement process consists of regular customer and claims satisfaction surveys, face-to- face sessions and focus groups. On an informal basis, our frontline employees work with customers daily to ensure their needs are met and are encouraged to provide suggestions for improvement to management. Our brand websites also offer a host of information for customers that include advice for customers to make their homes and cars safer eg: through the Homehelp portal.
Customers - CGU Commercial Intermediary customers Injured workers Employers	CGU engages both formally and informally with its intermediary customers. An important part of daily business is to build relationships with brokers and agents so they provide feedback that will continually improve our products and services. We also undertake formal surveys with our intermediaries and provide regular business updates and training on complex insurance matters. Through our workers' compensation businesses, we work closely with employers and injured people. We receive regular formal feedback from regulators about our products and services. We also talk frequently with employers to help them better manage safety in the workplace and the return to work of injured employees. In regional areas, we have regular dialogue with local communities to help improve the safety of their property and people.
Shareholders	We have more than 980,000 shareholders. We keep them informed through regular announcements to the Australian Stock Exchange. These announcements are relayed through an email messaging service to shareholders who have registered to receive them and They are also posted on the IAG website. Half-yearly results briefings and the Annual General Meeting (AGM) are webcast with archived copies available on our website. Due to the size of our register and the cost involved in communicating directly to our shareholder base, we seek media coverage of important events if we need to deliver information to shareholders. We also communicate formally with them through annual and half-year reports and at AGMs, where they are encouraged to ask questions of the Board. Shareholders can also submit written questions to the company's auditor to be considered at the AGM. These relate to the conduct of the audit and the content of the auditor's report. The company's auditor will be present at the 2005 AGM to answer the qualifying questions. A list of questions received will be made available at the 2005 AGM and the answers posted on the IAG website after the conclusion of the meeting. Electronic proxy voting was introduced for the 2004 Annual General Meeting to make it easier and more convenient for shareholders to lodge their proxy voting instructions on resolutions. All our share registry functions are performed by Computershare Investor Services who have a dedicated IAG shareholder information line. We also have a Shareholder Centre on our website. A selection of our shareholders are also invited to participate in our annual stakeholder survey.
Employees	Our people are critical to the success of our business. We have a number of formal and informal channels available to engage in dialogue with employees. These include Staff Consultative Committees, CEO Forums and Expos, email boxes and annual employee engagement surveys. Our people also have the opportunity to talk about their experiences and the work they do through internal publications and videos. In addition, we hold regular career performance and career discussions with our people. Employees also participate in our annual planning sessions where our strategy is communicated and team goals and plans are established.
Legislators and regulators	Through our Government Relations & Policy unit, we have input into the public policy process and parliamentary inquiries. In the 2004 calendar year, we produced 18 public policy submissions. Examples include our response to the Productivity Commission's Inquiry into smash repairers and insurers and the New South Wales Government's Inquiry into Personal Injury Compensation. These submissions are made available to the public through our website. We adopt an evidence-based approach in public advocacy and aim to propose solutions that are in the best interest of shareholders, policyholders and the community.
Suppliers Smash repairers, builders and jewellers Office supplies providers and car manufacturers Medical and healthcare providers, lawyers and doctors	We are working closely with our suppliers by developing consultative mechanisms for our preferred supplier network and providing incentives for them to increase the sustainability of their operations. Our preferred supplier code of practice also outlines our responsibility to our supply chain partners, including their rights to dispute resolution and our people's responsibility to interact with our preferred suppliers fairly. We measure over 30 major suppliers on their contribution to our sustainability targets and their own sustainability initiatives. In addition, we make available a range of cost competitive 'earth saver' products from our office supplies provider. http://www.iag.com.au/
Unions	Just over 2,000 IAG employees are registered with unions (Finance Sector Union and Australian Metal Workers Union). Our consultation process with the Finance Sector Union (FSU) is detailed in the IAG Enterprise Agreement (2003). Under the Agreement, we are obliged to consult with the FSU regarding workplace change programmes impacting employees, when positions are being made redundant and/or employees are being retrenched. FSU representatives are invited to address new recruits at our induction programmes. In accordance with the Agreement's grievance procedure, FSU representatives are recognised as an employees' representative.
Community partners Our partnerships operate at the national, state and local level and are focused on reducing risk in the community. Examples of such partnerships include: St John Ambulance Australia promoting the importance of first aid training and Project HeartStart; Kidsafe; CareFlight; The Royal Flying Doctor Service; Surf Life Saving Australia and our Social Capital Investment Programmes. See 'Reducing risk' section for information on how we are using our professional knowledge to reduce risk in the community	Each year, a selection of our partners are invited to showcase their organisations at our CEO Forum where employees have the opportunity to interact with them as part of an Expo style event. Representatives from partner organisations are also regularly invited to IAG functions enabling interaction with senior management. A number of our community partners are also supported via IAG's workplace giving programme where employees can donate through their pay to these organisations and we match donations. Community partners provide regular updates on how this support is being used. We have a team that manages our relationships with our partner organisations. They have a designated IAG contact to facilitate the partnership, and enable open communication, and a resource to help maximise the partnership opportunities. Each year, applications for IAG's communityhelp grants programme are sought via external advertising, the internet, and nominations from IAG employees.
Business organisations and industry groups	A number of our employees are representatives in business organisations and industry groups. For example, we participate in many, and chair a number, of the Insurance Council of Australia committees. Our CEO is currently President of the Insurance Council of Australia, as is our CEO in New Zealand for the Insurance Council of New Zealand. We also have representatives on committees for compulsory third party insurers, workers' compensation insurers, actuaries and accountants. IAG senior management representation on business organisations and industry groups We encourage our people to take part in public debate on areas of relevance to our core business. Our managers regularly speak at seminars, conferences and public hearings. By taking an active role on specific issues relevant to our business, we believe we are demonstrating how seriously we take our role as Australia's leading general insurance group.
Educators TAFE and the Construction Industry Training Council	We work in partnership with various educational institutions through our industry associations and community initiatives eg: Jumpstart Autobody Traineeship and Scholarship programmes. We partnered with The Australian Financial Review and a subsidiary of the Economics Teachers Association called, National Curriculum Services, to develop a national high school education resource. We are also partnering with educators from Community Education units, fire agencies and police forces to develop joint fire awareness and crime prevention education initiatives, respectively, for the community.
Media National, state and local Print and broadcast General and trade	Our Corporate Affairs team engages in ongoing dialogue with media through handling enquiries and requests, and producing media releases and special reports. We also invite media to participate in roundtable events, launches, and background briefings. The media's perception of IAG and our brands is monitored annually through a third party survey process.

Stakeholder

Engagement process

Customers - Personal Insurance

Our formal customer engagement process consists of regular customer and claims satisfaction surveys, face-to- face sessions and focus groups. On an informal basis, our frontline employees work with customers daily to ensure their needs are met and are encouraged to provide suggestions for improvement to management.

Our brand websites also offer a host of information for customers that include advice for customers to make their homes and cars safer eg: through the Homehelp portal.

Customers - CGU Commercial

Intermediary customers
Injured workers
Employers

CGU engages both formally and informally with its intermediary customers.

An important part of daily business is to build relationships with brokers and agents so they provide feedback that will continually improve our products and services.

We also undertake formal surveys with our intermediaries and provide regular business updates and training on complex insurance matters.

Through our workers' compensation businesses, we work closely with employers and injured people. We receive regular formal feedback from regulators about our products and services. We also talk frequently with employers to help them better manage safety in the workplace and the return to work of injured employees.

In regional areas, we have regular dialogue with local communities to help improve the safety of their property and people.

Shareholders

We have more than 980,000 shareholders. We keep them informed through regular announcements to the Australian Stock Exchange. These announcements are relayed through an email messaging service to shareholders who have registered to receive them and They are also posted on the IAG website.

Half-yearly results briefings and the Annual General Meeting (AGM) are webcast with archived copies available on our website.

Due to the size of our register and the cost involved in communicating directly to our shareholder base, we seek media coverage of important events if we need to deliver information to shareholders.

We also communicate formally with them through annual and half-year reports and at AGMs, where they are encouraged to ask questions of the Board.

Shareholders can also submit written questions to the company's auditor to be considered at the AGM. These relate to the conduct of the audit and the content of the auditor's report. The company's auditor will be present at the 2005 AGM to answer the qualifying questions. A list of questions received will be made available at the 2005 AGM and the answers posted on the IAG website after the conclusion of the meeting.

Electronic proxy voting was introduced for the 2004 Annual General Meeting to make it easier and more convenient for shareholders to lodge their proxy voting instructions on resolutions.

All our share registry functions are performed by Computershare Investor Services who have a dedicated IAG shareholder information line. We also have a Shareholder Centre on our website.

A selection of our shareholders are also invited to participate in our annual stakeholder survey.

Employees

Our people are critical to the success of our business. We have a number of formal and informal channels available to engage in dialogue with employees. These include Staff Consultative Committees, CEO Forums and Expos, email boxes and annual employee engagement surveys. Our people also have the opportunity to talk about their experiences and the work they do through internal publications and videos. In addition, we hold regular career performance and career discussions with our people.

Employees also participate in our annual planning sessions where our strategy is communicated and team goals and plans are established.

Legislators and regulators

Through our Government Relations & Policy unit, we have input into the public policy process and parliamentary inquiries.

In the 2004 calendar year, we produced 18 public policy submissions. Examples include our response to the Productivity Commission's Inquiry into smash repairers and insurers and the New South Wales Government's Inquiry into Personal Injury Compensation. These submissions are made available to the public through our website.

We adopt an evidence-based approach in public advocacy and aim to propose solutions that are in the best interest of shareholders, policyholders and the community.

Suppliers

Smash repairers, builders and jewellers
Office supplies providers and car manufacturers
Medical and healthcare providers, lawyers and doctors

We are working closely with our suppliers by developing consultative mechanisms for our preferred supplier network and providing incentives for them to increase the sustainability of their operations.

Our preferred supplier code of practice also outlines our responsibility to our supply chain partners, including their rights to dispute resolution and our people's responsibility to interact with our preferred suppliers fairly.

We measure over 30 major suppliers on their contribution to our sustainability targets and their own sustainability initiatives. In addition, we make available a range of cost competitive 'earth saver' products from our office supplies provider.

http://www.iag.com.au/

Unions

Just over 2,000 IAG employees are registered with unions (Finance Sector Union and Australian Metal Workers Union).

Our consultation process with the Finance Sector Union (FSU) is detailed in the IAG Enterprise Agreement (2003). Under the Agreement, we are obliged to consult with the FSU regarding workplace change programmes impacting employees, when positions are being made redundant and/or employees are being retrenched. FSU representatives are invited to address new recruits at our induction programmes. In accordance with the Agreement's grievance procedure, FSU representatives are recognised as an employees' representative.

Community partners

Our partnerships operate at the national, state and local level and are focused on reducing risk in the community.

Examples of such partnerships include: St John Ambulance Australia promoting the importance of first aid training and Project HeartStart; Kidsafe; CareFlight; The Royal Flying Doctor Service; Surf Life Saving Australia and our Social Capital Investment Programmes.

See 'Reducing risk' section for information on how we are using our professional knowledge to reduce risk in the community

Each year, a selection of our partners are invited to showcase their organisations at our CEO Forum where employees have the opportunity to interact with them as part of an Expo style event.

Representatives from partner organisations are also regularly invited to IAG functions enabling interaction with senior management.

A number of our community partners are also supported via IAG's workplace giving programme where employees can donate through their pay to these organisations and we match donations. Community partners provide regular updates on how this support is being used.

We have a team that manages our relationships with our partner organisations. They have a designated IAG contact to facilitate the partnership, and enable open communication, and a resource to help maximise the partnership opportunities.

Each year, applications for IAG's communityhelp grants programme are sought via external advertising, the internet, and nominations from IAG employees.

Business organisations and industry groups

A number of our employees are representatives in business organisations and industry groups.

For example, we participate in many, and chair a number, of the Insurance Council of Australia committees. Our CEO is currently President of the Insurance Council of Australia, as is our CEO in New Zealand for the Insurance Council of New Zealand.

We also have representatives on committees for compulsory third party insurers, workers' compensation insurers, actuaries and accountants.
IAG senior management representation on business organisations and industry groups

We encourage our people to take part in public debate on areas of relevance to our core business. Our managers regularly speak at seminars, conferences and public hearings.

By taking an active role on specific issues relevant to our business, we believe we are demonstrating how seriously we take our role as Australia's leading general insurance group.

Educators

TAFE and the Construction Industry Training Council

We work in partnership with various educational institutions through our industry associations and community initiatives eg: Jumpstart Autobody Traineeship and Scholarship programmes.

We partnered with The Australian Financial Review and a subsidiary of the Economics Teachers Association called, National Curriculum Services, to develop a national high school education resource. We are also partnering with educators from Community Education units, fire agencies and police forces to develop joint fire awareness and crime prevention education initiatives, respectively, for the community.

Media

National, state and local
Print and broadcast
General and trade

Our Corporate Affairs team engages in ongoing dialogue with media through handling enquiries and requests, and producing media releases and special reports. We also invite media to participate in roundtable events, launches, and background briefings.

The media's perception of IAG and our brands is monitored annually through a third party survey process.

Our stakeholders