Insurance Australia Group Limited (IAG) has announced the establishment of a single Australian division that will be led by current IAG Chief Operating Officer (COO), Mark Milliner.
The launch of the new Australian division sees IAG consolidate and simplify its operating model, combining the former Australian Consumer, Australian Business, Operations and Satellite Divisions.
Current IAG COO, Milliner, has been named as the Chief Executive Officer (CEO) of Australia at IAG, with immediate effect. In his new role, Milliner will be tasked with driving the continued simplification and optimisation of the company’s operations and processes, says IAG.
The insurer continues to explain that it expects its optimisation programme to reduce gross operating costs by at least 10%, or $250 million pre-tax, annually, by the end of 2019.
The simplified division aims to centralise accountability for the customer, product, distribution, and operations functions for the company’s Australian brands, explains IAG, which includes NRMA Insurance, CGU, WFI, SGIO, and SGIC.
IAG Managing Director and CEO, Peter Harmer, 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.”
Typically, IAG is a big buyer of reinsurance protection, and after the consolidation of its Australian operations the insurer might be better equipped to optimise its reinsurance spend in the future.
Commenting on the appointment of Milliner, Harmer, added; “Mark’s depth of experience, passion for our customers and people, and his appreciation of the role of insurance in making communities and individuals feel safer, make him the ideal person to lead this business and achieve our purpose to make your world a safer place.”
IAG has also announced that Anthony Justice, CEO of its Australian Consumer Division, has chosen to leave the company.
Harmer, commented; “Anthony has been a valued member of my leadership team and has made a significant contribution to our business over the past six years, particularly through his leadership of the Australian Consumer Division.
“We will miss his passion and commitment, and wish him every success for the future.”
While Ben Bessell, CEO of the Australian Business Division, will remain a member of the insurer’s Group Leadership Team, and has been named Executive General Manager Business Distribution, reporting to Milliner.
The consolidation of its Australian business operations means IAG will now report financial results for Australia, New Zealand, and Asia.
