The major step in fully integrating the CGU operation into the IAG conglomerate has been announced. The new CGU Intermediary Business division brings together CGU’s intermediary businesses with IAG’s previously existing intermediated commercial business, which includes brands like SGIO Insurance and NRMA.

IAG Group Executive of Intermediary Business Bob Wagstaffe will head the new division, which will develop all commercial products except workers’ compensation. The division will also manage distribution of all products sold through intermediaries, which will be marketed through the CGU brand.

“We have created a new organisational structure for intermediary business which reflects the best of CGU and SGIO Insurance,” Mr Wagstaffe said. “It is deliberately structured around our key market segments, enabling us to be more customer-focused.”

IAG has also decided to use CGU’s PMS system as the core insurance system for the new division. Mr Wagstaffe said the system “supports all of the key interfaces with broker systems such as Sunrise Exchange”.

Meanwhile, the CGU reorganisation is understood to have eliminated and entire level of management within the company, with state managers no longer part of the structure.