RAC Insurance (Australia) is the insurance arm of The Royal Automobile Club of Western Australia (RAC WA), a membership organisation representing the interests of more than one million members. RAC offers motor and home insurance products and is the market leader in Western Australia. As a purpose-driven organisation, members are at the heart of its core values and behaviours. Members defines the DNA of its organisational culture.
Mutuality is a key differentiator in the building of RAC’s culture, which is focused on driving innovation to create enhance value for members. The pace of change is faster than ever, which creates uncertainties for the business, but also opportunities. By exploiting its current business model, it continues to drive better efficiencies (1% improvements across the core business), as well as creating a capacity to explore new growth opportunities to better serve its members for a sustainable future.
In its transformation, RAC is focused on modernising systems and processes. It is moving to the cloud – the first Australian insurer to do so – to improve speed and agility and ultimately delivering better outcomes for members. Online channels now account for 60% of new business sales and 15% of claims. The organisation is also looking at opportunities around AI, machine learning and better automation. However, its transformation is not just about technology, but about a continuous delivery mindset and culture.
As an organisation, it has moved away from simply looking at member service to member experience, taking a holistic approach to the member journey. Connecting and listening to members has helped in this process, exploring new ways of working and using human-centred design principles to involve and engage members (running 38 hackathons involving 240 people in the last year).
One of RAC’s key principles influencing its culture and capability is member focus. Its Member Centre Program is driving cultural change within the organisation, helping in its transformation to be a truly member-centred organisation. In its transformation journey, “culture is king”. Leadership and people are important, and clarity and alignment are essential. Using dynamic teams and collaboration has been a really positive experience for RAC’s employees. Through new systems and processes, and promotion of diversity, inclusion and safety, it has discovered some hidden talents and unearthed the passion of its people to fulfil RAC’s purpose.
