Insurance giant IAG launched its fifth Reconciliation Action Plan o Thursday, pledging to spend at least $10 million with Indigenous-owned businesses over the next three years.

Launched at the National Centre of Indigenous Excellence in Redfern, the Stretch RAP will cover July 2025 to June 2028, and marks a step change in IAG's approach to reconciliation - combining ambitious procurement targets with an intent to embed reconciliation deeper within the company's operations.

Since becoming the first major insurer to introduce a RAP in 2013, IAG has steadily grown its commitment. Now, CEO Nick Hawkins says the business is "continuing to take a leadership role in driving reconciliation and advocating for meaningful change."

That leadership now includes a 68 per cent increase in procurement from Indigenous businesses compared to its last RAP - $10 million over three years, up from $3.2 million.

But the focus isn't just on a dollar figure.

The RAP also sets out to support female-owned Aboriginal and Torres Strait Islander businesses, improve cultural safety across IAG's workplaces, and invest in leadership pathways for First Nations staff.

Karen Mundine, from the Bundjalung Nation of northern NSW and CEO of Reconciliation Australia, said the latest RAP reflects a broader evolution in how corporate Australia understands its role in reconciliation.

"IAG is scaling up its commitment to First Nations economic empowerment," she said. "Their procurement target, their investment in capability-building, and their ongoing support for community-led organisations show a real intent to create lasting structural change."

Importantly, IAG's new RAP includes a focus on providing clearer and more accessible information to Aboriginal and Torres Strait Islander customers in a move designed to reduce the cultural burden often placed on both staff and clients.

More information about IAG's RAP and its broader Indigenous engagement is available online at: www.iag.com.au/reconciliation.