Insurance giant IAG exits from IAL brand

Insurance giant IAG exits from IAL brand | Insurance Business Australia

Insurance giant IAG exits from IAL brand

IAG, Australia’s largest general insurance company, has announced its exit from the IAL brand, a provider of home, motor and landlord insurance.

“We believe consolidating our product offering for the broker personal lines market under the CGU brand is an important step in simplifying our business and ensuring we can provide the best possible products and experiences for our valued brokers and partners,” said IAG’s CEO Nick Hawkins.

IAL distributes personal lines insurance through the brokerage network Steadfast.

The move is part of IAG’s bid to focus on strengthening the fundamentals of its core insurance business.

“On my first day as CEO I established a dedicated intermediated insurance business to focus on the needs of our brokers and partners who play such an important advisory role for their clients to ensure their assets and businesses are protected,” Hawkins said.

In today’s announcement, Hawkins said his company is consolidating its product offering for the broker personal lines market under the CGU brand. The CEO said this is an important step towards simplifying the business and providing better products for brokers and partners.

Read next: IAG boss lifts the lid on full-year financials

“Through CGU we’re well placed to succeed in this market, and we intend to support more brokers in harnessing our established brand, trusted relationships and strong core insurance capabilities,” he explained.

Hawkins said the immediate priority is to work with Steadfast and its broker network to ensure a smooth transition for its customers and their clients.

Steadfast CEO Robert Kelly said: “We have a longstanding and strong relationship with IAG and we understand its desire to have a one brand strategy through CGU to provide personal lines insurance products to the broker market.”

Kelly said Steadfast would work closely with IAG to bring their personal lines products on to its broker platform as soon as possible. IAG anticipates that CGU will join the platform by the end of FY22.

Last month IAG announced is yearly financial results and a net loss of $427 million.

Read next: Steadfast CEO warns of insurance industry's rising costs

During the results presentation, Hawkins said the loss for the year was driven by, “a number of disappointing, unusual items. This relates to historical issues that we’ve identified, that we’ve provisioned for and that we’re rectifying.”

IAL will cease writing new business from November 01, 2021,and renewals from December 01, 2021.