While some of Australia’s largest insurance companies are posting record profits, everyday Australians continue to be hit with ever-increasing premium hikes.
IAG recently posted a profit of $1.42 billion (up 79.1 per cent), while Suncorp posted an $801 million profit (up 17 per cent). And in August QBE posted a nearly 100 per cent increase in profits – $802 million for its half-yearly results.
Meanwhile, premiums are up by 36 per cent since 2021.
FSU member and IAG employee Rosalyn Watts said that was a tough pill to swallow, particularly in a cost-of-living crisis.
“These profits don’t flow down to us as workers,” Rosalyn said.
“To add salt to the wound, hundreds of job cuts have now been announced resulting in many of us feeling even more undervalued.”
One FSU member who works at IAG said it was finance workers at the coalface who are bearing the brunt of angry and increasingly stressed insurance customers.
“I’m dealing with more and more customers who are unhappy, and they’re telling me the premium increases are hurting.
“I started working for IAG to help people who are going through difficult times.
“Instead, I’m seeing greater and greater profits at IAG with less and less reward for staff and our customers.”
Unfortunately, it’s a reminder that CEOs will always put profits ahead of their workers – which is why workers must continue to stand together through their union to demand their fair share.
That’s exactly what FSU members have done over the past year, with some promising results.
“We have fought hard to win improved pay outcomes through the last round of Enterprise Agreement negotiations,” said Rosalyn.
“This year we managed to double our minimum fixed pay compared to previous years. But that was starting from a very low bar.
“IAG still needs to go much further and provide guaranteed cost of living pay that applies to all staff in future bargains instead of pay based on unreasonable performance targets and management discretion.”
Significantly, the FSU has focused on moving insurance companies away from discretionary market-based pay to guaranteed pay increases, something that is now reflected in agreements for Bupa, IAG, Zurich and HBF.
It means these employees now have guaranteed pay increases (up to as much as 13 per cent over three years for some members), providing greater income certainty and helping keep up with the cost of living.
Other wins include hybrid working arrangements being recognised in agreements for the first time, greater access to and increased paid parental leave, and superannuation paid on PPL.
These are great achievements but there’s so much more to do. Remember, we win when union members stand together – so start talking to your colleagues about the kind of change you want to see and be prepared to work with our union to make them happen!
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