IAG CEO says home building approval processes must be streamlined
IAG CEO Nick Hawkins says to keep insurance accessible for everyone, we need streamlined approval processes for new builds and rebuilds, and ‘stronger incentives and pathways to grow the supply of skilled labour’.
CEO Survey 2026: FULL COVERAGE
Economy
How would you rate the momentum of the Australian economy as we head into 2026? Are cost pressures in your business: increasing/stable/easing? Are you likely to increase, hold steady, or trim your investment spend or employment over the next 12 months?
The Australian economy has improved in 2025 and in our business, we are seeing inflation starting to moderate, particularly in our motor portfolio. Real wages are slowly increasing, and new tariffs are having a relatively moderate impact. However, productivity growth is still weak and is forecast to remain so through to the next calendar year.
In our business, we have a real focus on efficiency, particularly in our home and motor claims business so we can deliver to our customers and manage costs. Outside of motor, inflation is still in high-single digits for homes, while inflation has eased in motor policies to around mid-single digit.
We have invested in our Enterprise Platforms across our retail and intermediated businesses, improving our digital capabilities and process efficiency. We’re also embedding new technologies into the business. We are investing in strong organic and inorganic growth, and we expect our employee numbers will grow as we achieve our growth targets.
Technology
Which best describes your organisation’s AI adoption? (Exploring/Piloting/Implementing selectively/Scaled across business) If implementing or scaled, are the productivity benefits starting to come through or do you expect more time for the full impact. Has the use of AI started to influence employment decisions across your organisation.
AI has been part of how we run our business for some time and we continue to adapt to advances in how it operates, including advanced agentic AI. Over the year we transitioned from selective implementation into business processes, to enterprise-wide engagement. It’s been adopted quickly by our employees, and we continue to embed AI into the way we do business and deliver to our customers. From early on we spent the time needed to also ensure AI was being used in a safe and responsible way and we were a founding member of the Gradient Institute which advances safe and responsible AI. We are starting to see significant productivity and customer benefits. In claims, intelligent assistants help our call centre staff respond faster, improving the customer experience. AI also supports fraud detection and management. In underwriting, we have streamlined our processes using AI-driven document extraction, allowing underwriters to focus on analysis and decision-making. 1AI is reshaping our workforce, with routine tasks increasingly automated and employees empowered to focus on customer outcomes. Our growing network of trained AI experts embedded across divisions has been key to scaling adoption safely and fostering a culture of innovation and continuous improvement. We are investing in upskilling and reskilling, and are supporting our people as we change, learn and adopt new technologies.
People
Has your organisation evolved its approach to flexible working during the past year? Does your organisation have a policy around office attendance. What feedback, if any, do you have for governments considering prescribing working from home for a set amount of days per week.
We boosted our workplace flexibility initiatives this year, introducing 20 weeks of gender neutral paid parental leave at full pay, available from the start of employment, and uncapped paid family and domestic violence leave for our people. We’re a purpose led organisation, and it’s deeply ingrained in our culture.
IAG offers 20 days of paid leave for our people who volunteer for emergency services organisations. And this is a direct example of bringing our purpose to life – to make your world a safer place. Our office attendance is determined between leaders and their teams, and dependent on type of role and business need. I believe it’s important to encourage office attendance where we can. There’s so much social capital and performance edge to be gained from engaging directly with colleagues and leaders, including more opportunities for on-the-job coaching and collaboration. Fostering that human connection and culture is critical for any business – it’s difficult to cultivate culture remotely.
Geopolitics
How significantly are global trade tensions/tariffs impacting your business? Is Australia getting the balance in managing its big economic and political relationships with major trading partners?
We have a broad and robust supply network that has kept the impacts of global trade tensions and tariffs to manageable levels. Our investment portfolios are largely comprised of fixed interest assets and government bonds, reducing our exposure to increased market volatility. We will continue to monitor the evolving landscape to ensure the accessibility of insurance to our customers.
Australia is navigating a complex geopolitical environment, particularly balancing our trade relationship with China and security arrangements with the US. We believe the Australian government is balancing these competing priorities well, with recent successes in stronger defence cooperation and development of long-term trade partnerships.
Energy
Do you have any concerns about Australia’s pathway to renewables? Should there be more flexibility in settings leading to 2035? Are energy costs becoming an increasing factor around your longer-term planning?
Australia’s pathway to renewables is important for achieving national emissions reduction targets and building resilience against climate risks. While progress has been made, there are still challenges in managing energy supply and demand in particular.
Flexibility in policy settings can help manage uncertainty and enable innovation, but it’s important that any adjustments maintain clear, credible signals for investment. Long-term certainty is essential for accelerating the energy transition and supporting the development of sustainable finance frameworks. The government should continue to provide the right investment signals to the private sector to accelerate the transition.
Energy costs are a consideration in our planning, particularly as they influence operating expenses and the broader economic environment in which our customers and communities operate.
At IAG, our Climate Action Plan includes a commitment to sourcing the equivalent of 100 per cent of our direct electricity demand in Australia and New Zealand from renewable sources. This reflects our role in supporting the transition to a low-carbon economy while managing risks associated with climate change.
Reform
What would nominate as your top policy priority that can be used to lift Australia’s competitiveness or productivity? Should the Albanese government be pushing for even bolder policies around reform?
As Australia’s largest insurer, we see first-hand the costs and delays caused by skills shortages and regulatory barriers in the building sector, and the impact these have on communities.
To keep insurance accessible for everyone, we need streamlined approval processes for new builds and rebuilds, and stronger incentives and pathways to grow the supply of skilled labour.
Bolder reforms in these areas could also help Australia address intergenerational challenges around home ownership and strengthen proactive responses to future climate risks.
