IAG is moving ahead with plans to reduce the number of general insurance licences it holds from nine to two, after receiving Federal Court clearance.

It will transfer licences held by CGU, Swann, WFI, IAG Re Australia, Mutual Community General Insurance, CGU-VACC and HBF into a related business entity, Insurance Australia Limited (IAL). 

“The licence consolidation process does not affect the brands,” a spokesman told insuranceNEWS.com.au. “It is an operational exercise to help IAG become a simpler, more efficient and agile business.”

Reducing licence numbers will free up resources that can be used to improve operations and customer service, the company says.

“The terms of policies will not change after the transfer, other than IAL becoming the insurer under each transferring policy.

“There will be no impact on claims, and policies will continue to operate and be renewed in the same way.”

The change is expected to take effect about August 1 next year, after a final court hearing expected in July. Policyholders can attend the hearing and request to be heard if they wish to object.

Details will be available here, while the company has set up a dedicated information hotline (1800 907 424) and email address (licences@iag.com.au).

The Australian Prudential Regulation Authority has no objection to the proposed transfer.

IAG says the group’s other licence will be held by Insurance Management Australia.

Rival insurer Suncorp has completed a similar process to consolidate its licences under a group simplification program.