One of Australia's largest insurance groups, IAG, announced yesterday the creation of a single Australian division to simplify operations.
The Australia Division will bring together the former Australian Consumer, Australian Business, Operations and Satellite Divisions. It centralises accountability for the customer, product, distribution and operations functions for IAG’s Australian brands, which include NRMA Insurance, CGU, WFI, SGIO and SGIC.
Mr Mark Milliner, currently IAG COO, leads the division as CEO Australia with immediate effect.
IAG Managing Director and CEO Peter Harmer said in a statement that the new division is a logical next step for IAG and will ensure the company maintains its leadership position in its key Australian market.
He said: “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 restructuring is part of IAG's optimisation programme announced last year that the group will continue, expecting that it will reduce gross operating costs by an annual run rate of at least 10%, or A$250 million (US$198 million) pre-tax, by the end of the financial year ending 30 June 2019.
Chief Executive of the Australian Consumer Division, Anthony Justice, has decided to leave IAG. Chief Executive of the Australian Business Division, Ben Bessell, remains a member of IAG’s Group Leadership Team and becomes Executive General Manager Business Distribution, reporting to Mr Milliner.