2020 CEO Survey: Nick Hawkins, IAG

Make it simpler for business to operate by removing regulatory and taxation complexity, says IAG chief Nick Hawkins.

Insurance Australia Group CEO Nick Hawkins. Picture: NCA Newswire/Gaye Gerard

What are the three enduring lessons or changes to flow from COVID-19?

COVID-19, along with Australia’s bushfire crisis earlier this year, reinforced to us the importance of being a purpose-led organisation. We learned that being able to respond to the logistical and technical challenges of these crises quickly was because we made decisions guided by our purpose.

Large distributed workforces will become the norm and COVID-19 has accelerated more flexible ways of working.

Through COVID-19, ensuring people’s safety stepped up to a different level this year and that’s a change that will continue to play out for us, and all businesses.

Like many companies, we’ve seen digital become a key way our customers connect with us.

How would you rate the shape of the Australian economy as we head into the new year?

I’m optimistic about the economy. Federal and state governments’ stimulus packages and action by the Reserve Bank have played an important role in supporting the economy and will continue to do so. Key indicators are pointing to a faster recovery than many had anticipated.

We should also consider economic growth and stability in the context of changing community expectations.

What three reforms are needed to sustainably grow the economy?

Make it simpler for business to operate by removing regulatory and taxation complexity.

Investing in infrastructure, which provides the building blocks for growth.

Building out the resilience of our economy to encourage confidence to invest.

What are the three best growth opportunities for your company in 2021?

IAG has strong brands, loyal customers, a great culture, financial strength — and we are really clear about our future direction in 2021.

We’ve taken decisive action to set ourselves up to be a simpler, stronger IAG and part of this is continuing to deliver on our strategy around simplification. The easier we are to do business with, the more I think we can grow.

We want to deliver better insurance experiences to customers and we are accelerating our investment to improve the digital experiences we provide. This year we’ve seen that more of our customers are comfortable doing business with us online, and we expect those behaviours will stick.

What impact will digital transformation have on your company?

COVID-19 has highlighted the growing role of digital in every part of our lives — from work, school, health and shopping to the way we socialise with family and friends — and these experiences are shifting the way we all use technology.

These shifts in consumer behaviour — along with a growing expectation for great online experiences — mean that we’re accelerating our investment in digital. Behavioural change that has previously taken several years is taking place in months and our ability to tailor products and experiences will move from months to days.

AI and automation technologies will continue to help us simplify and speed up the customer experience, especially when a customer makes a claim. AI has helped us reduce the claims time for our customers whose cars have been written off in an accident from more than three weeks to days, helping them get back on the road faster.

How would you rate business, state and federal government performance this year?

The government’s strong and quick actions, including the formation of the National Cabinet, have protected public health and the economy.

Overall I have been impressed by how businesses — including many small businesses — have adapted. The JobKeeper program has been successful in helping those businesses keep going and putting them in a position to recover.