IAG to maintain just one division in AustraliaJuly 20 2017 by InsuranceAsia News Staff
IAG has created a lone division in Australia to be headed by the current chief operating officer Mark Milliner.
The recent announcement means that the insurer will bring together all of its divisions in Australia, including consumer, business, operations and satellite divisions.
The restructuring is part of a US$250 million drive to save costs as earlier revealed by the firm.
Anthony Justice, the chief executive of the insurer’s Australian consumer division, is set to leave IAG.
The firm’s managing director and CEO Peter Harmer said the simpler and more efficient setup will allow the insurer to better respond to changing customer needs and expectations.
He expects customers to experience more ease in doing business with the firm, thus resulting in an improved productivity.
Under the IAC optimization programme, gross operating costs are hoped to be reduced by an annual run rate of at least 10% by the end of fiscal 2019.
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Jonathan Moss will be responsible for portfolio solutions, ensuring business alignment with brokers and managing relationships.
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Strong prospects Down Under are being driven by a growing population and a mature economy.
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The sale will fulfil a condition of the sale of its life insurance businesses in Australia and New Zealand to AIA.