Brokers and authorised representatives will notice little change under IAG’s organisational restructure, according to CGU CEO Peter Harmer.

Last week parent company IAG announced it would create three divisions: personal insurance, commercial insurance and enterprise operations.

Personal insurance will be led by Australia Direct CEO Andy Cornish and will take over the affinity and financial institutions business that is currently part of CGU.

Australia Direct’s retail business insurance will move to the expanded commercial insurance division run by Mr Harmer, who says the changes will position the commercial business to integrate CGU and the recently acquired Wesfarmers commercial insurance operations.

Support functions will be split out into the enterprise operations division led by Alex Harrison, who is currently COO of Australia Direct. 

An IAG spokesman told insuranceNEWS.com.au the restructure will mean some moves between offices and possible redundancies.

Mr Harmer says the new model “will enable us to better use our scale to improve service delivery by bringing together our expertise across the group”.

He says it will enable the commercial and personal lines divisions to focus on customers while enterprise operations deals with support functions such as IT, human resources and supply chain.

“We will still go to market under the CGU brand, and the commercial insurance division will manage our relationships with intermediaries across all product lines,” Mr Harmer told insuranceNEWS.com.au.

“Business development managers will continue to ensure we take a holistic approach to our partners’ portfolio of business with us.”

IAG MD Mike Wilkins says the new model will enable the Australian businesses to be more responsive to changing customer expectations and needs.

“We also expect that the revised structure will lay the foundation for us to derive maximum value from our planned Wesfarmers underwriting business acquisition.”

The restructure only applies to Australian operations.