Dual Australia is to launch a new national business unit as it aims to bounce back from a $17 million fraud.

CEO Asia-Pacific Damien Coates says the company “lost its way” in recent years, but the fraud was a “wake-up call” and it is looking to return to its “service foundations”.

The national business unit will complement offices in Sydney, Melbourne, Brisbane and Perth, with the aim of improving service to brokers.

GM Risk and Compliance Leo Abbruzzo will lead the eight-strong team, which is to begin work on October 1 and will also be responsible for SA and Tasmania.

Mr Coates told insuranceNEWS.com.au the company wants to return to “innovative solutions and exceptional service for our brokers”.

He says there are “huge opportunities” in expanding Dual’s financial lines business and developing underinsured areas such as crime, statutory liability and cyber risk.

As part of the restructure GM Underwriting and Operations Clinton Evans has been promoted to COO and will assume responsibility for the southern region.

Other appointments made from within the company are Hamish McDonald-Nye as Southern Region Financial Lines Manager, Emily Winwood as Marketing and Relationships Manager, and Jane Cullen as Operations Manager.

At a presentation in Melbourne last week, Mr Coates outlined lessons learned from the fraud, allegedly committed by national claims manager Josie Gonzalez and her husband Alvaro. Invoices were submitted from legal firm JAAG – a company allegedly set up by the couple – over two-and-a-half years.

Mr Coates says the experience has raised three issues.

First, the vendor approval processes must apply to all vendors. Dual had a rigorous process in place but JAAG slipped through because it was not a logical vendor.

Second, there should be a tiered payment-approval process. All JAAG invoices were signed off by the two most senior people at Dual – but they were handling more than 800 invoices a month and that made the control ineffective.

Finally, the annual leave policy should be properly enforced and absent employees shut out of the system so someone else can do their job. Mr Coates says mobile technology means “no one is ever on annual leave these days”.

The alleged fraud was uncovered when Mrs Gonzalez was blocked from the system while on maternity leave.

The civil case is ongoing but it is expected the entire $17 million will be recovered.

Police are yet to be involved in the matter, Mr Coates says.

He thanked brokers for their support through a difficult period, but says some competitors responded in a “beyond tasteless” manner.