CGU’s decision early this year to enter the marine insurance market after it had to drop its joint ownership in Associated Marine Insurers is proceeding, although not without ruffling a few feathers.

Associated Marine was until recently owned by Zurich and CGU. But Zurich argued that when Insurance Australia Group bought CGU in 2003, it no longer had the right to hold onto its stake. The courts agreed, leaving CGU to hand over its 50% to Zurich last December.

In June, Associated Marine MD Adrian Norman said he was concerned that CGU would poach staff while setting up its marine operation. However, it seems that only two Associated Marine people were hired by CGU Marine.

Head of Intermediary Business Marine Malcolm Freeman says he is concerned by reports of staff poaching. “We didn’t directly approach any Associated Marine staff. But the marine industry is rather concentrated and it doesn’t take long for word to get out that there’s a new provider on the scene.”

Of the 19 staff listed on CGU Marine’s website, seven have had no specific marine insurance experience. Three are from the marine operations of Vero and five from QBE Mercantile Mutual. One executive came from now-defunct HIH Insurance and another from American International Group’s marine division.

Mr Freeman says the business is in the process of a “soft launch” in most states. Policy wordings are in place and the business has had a pleasing reception from the market.

CGU Marine offers home contents transit, annual cargo insurance (imports/exports), annual cargo insurance (inland), single cargo insurance (imports/exports), single transit insurance (inland), combined cartage insurance for transport operators, and commercial hull insurance.

“Although our product offering isn’t as full as some, we’ll be adding additional services as we go,” Mr Freeman said.

CGU Marine wants to establish a profile in the intermediary market over the next 12 months. As for the next few years, CGU still has the goal it had when it stepped aside from Associated Marine – becoming a top-three marine insurance provider.

“We’ll do this by ensuring our infrastructure and service delivery is the best it possibly can be.”