IAG announces reshuffle

IAG announces reshuffle | Insurance Business Australia

IAG announces reshuffle
IAG has announced a reshuffle of its Australian business which will see the creation of a single Australian division.

The new division will bring together the firm’s consumer, business, operations and satellite divisions, and will be led by Mark Milliner who has been named CEO for Australia.

Milliner, who previously held the title of chief operating officer with IAG, will take on the new role with immediate effect as Anthony Justice, chief executive of the Australian consumer division will leave the company. Ben Bessell will remain a member of the IAG Group leadership team and will become executive general manager of business distribution and will report to Milliner.

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The single division is designed to help simplify IAG’s operating model and centralises accountability for the customer, product, distribution and operations functions for IAG’s Australian brands.

“Creating a simpler, more efficient Australia division takes advantage of the scale of our business and the expertise of our people so we can respond more effectively to rapidly changing customer needs and expectations,” Peter Harmer, IAG managing director and CEO said of the changes. “The new structure will make it easier for people to do business with us, boost our productivity and allow us to deliver great experiences to our customers today, and into the future.”

Harmer noted that the new division will allow the firm to leverage its investments in emerging technologies in a bid to boost customer experience.

IAG expects its optimisation program will reduce gross operating costs by an annual run rate of at least 10%, or $250 million pre-tax, by the end of FY19 and Milliner will continue to drive the ongoing simplification of the firm’s operating processes and systems.

The creation of the new division will see IAG report financial results for Australia, New Zealand and Asia as well as providing further segmentation of the Australian division into consumer and business.

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