Key NZ insurer overhauls Australian operations

Key NZ insurer overhauls Australian operations | Insurance Business

Key NZ insurer overhauls Australian operations
IAG is implementing a new operating model for its Australian operations as it attempts to create a more customer-focused and efficient organisation while also making the most of its planned Wesfarmers acquisition.
 
While IAG in New Zealand is not affected directly, spokesman Craig Dowling said it would be supporting the change.
 
IAG is making this change in Australia and will then review the opportunities it presents,” he told Insurance Business.
 
According to the group, the new model will comprise two customer-facing divisions - Personal Insurance and Commercial Insurance - to be supported by a new Enterprise Operations division.

IAG hopes to better leverage its scale and insurance expertise to deliver better outcomes for its customers, people and shareholders.
 
From 1 July 2014, in Australia IAG will have three divisions:
  • Personal Insurance to be led by Andy Cornish, currently Chief Executive of Australia Direct. This division will provide personal insurance products and will include the affinity and financial institution partnerships which are currently part of CGU;
  • Commercial Insurance to be led by Peter Harmer, currently Chief Executive of CGU. This division will provide insurance to business customers and will include Retail Business Insurance (RBI) which is currently part of Australia Direct;
  • Enterprise Operations to be led by Alex Harrison, currently Chief Operating Officer for Australia Direct. This division will provide support services including information technology, people and culture and procurement and supply chain.
 
IAG managing director and CEO, Mike Wilkins said: “Our new operating model will allow our Australian operations to better respond to changing customer expectations and needs. We also expect that the revised structure will lay the foundation for us to derive maximum value from our planned Wesfarmers underwriting business acquisition.

“We must continue to anticipate, adapt and respond to our customers’ changing needs. The new operating model will allow our Personal Insurance and Commercial Insurance divisions to be entirely focused on meeting those needs.

“We’re in a strong financial position and now is the right time to set ourselves up for the next phase of development and that’s what we’re doing. We are excited about the opportunities which our revised structure in Australia will provide, and the even stronger future it creates for our organisation."

Under the new operating model, Australian customers will continue to be offered insurance under IAG’s brands, including NRMA Insurance, SGIO, SGIC, CGU and Swann Insurance.

Further details of the new operating model and its financial impacts will be provided at the FY14 results announcement on 19 August 2014.