Insurance Australia Group is simplifying its operating model as part of its $250 million cost savings exercise. The owner of major insurance brands, including NRMA and Swann, said on Wednesday it will create an Australian division as part of a previously announced optimisation program to reduce gross operational costs by a pre-tax $250 million by the end of 2019.
The insurer said the restructure will bring together its former Australian consumer, business, operations and satellite divisions, and will help business run smoother. “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,” IAG chief executive Peter Harmer said in a statement.
The division will be run by the company’s current chief operating officer, Mark Milliner, while chief executive of the Australian Business Division, Ben Bessell, will become executive general manager business distribution.
The chief executive of the Australian consumer division, Anthony Justice, has decided to leave the company.
Mr Harmer said Mr Justice had made a significant contribution to the business over the past six years.
“We will miss his passion and commitment, and wish him every success for the future,” Mr Harmer said.
IAG says it will now report financial results for Australia, New Zealand and Asia and will release its full year results on August 23. .