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IAG has announced the creation of a singular Australia division that will see the company bring together the former Australian Consumer, Australian Business, Operations and Satellite Divisions.

The move centralises accountability for the customer, product, distribution and operations functions for IAG’s Australian brands, which include NRMA Insurance, CGU, WFI, SGIO and SGIC.

Cutting down on operating costs have also been a consideration for the group, with costs expected to be reduced by an annual run rate of at least 10 per cent, or $250 million pre-tax, by the end of FY19.

IAG MD and CEO Peter Harmer said the strategic move ensures that the company maintains its leadership position in Australia and streamlines business operations across its entire portfolio.

“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.

“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.

“It will allow us to better leverage our investment in new and emerging technologies to further improve the customer experience and create a successful and enduring company.”

The decision has also led to executive changes throughout the business with IAG COO Mark Milliner now leading the newly created division as CEO Australia, effective immediately.

Chief executive Australian consumer division, Anthony Justice, has tendered his resignation following the decision.

Chief executive Australian business division, Ben Bessell, is now executive GM business distribution, reporting to Milliner.

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