IAG has appointed Peter Harmer as CEO of IAG Labs – a new division focusing on digital innovation.

Mr Harmer, who was previously CEO of IAG Commercial Insurance, became Chief Digital Officer in March, tasked with developing a group-wide strategy.

The new division will be IAG’s “digital hub”, combining existing functions and technology and exploring new prospects.

It includes a new customer insights capability, a centralised digital product and service development team, and a venturing unit focused on new business opportunities and disruptive technology.

“The shift to digital… is happening at an incredible pace, and we see a significant opportunity to evolve quickly in this area,” IAG MD and CEO Mike Wilkins said.

“Since taking on the role of Chief Digital Officer in March, Peter has been looking at how we can take advantage of the shift to digital and be more inventive, which is why we’ve created IAG Labs.”

CEO Enterprise Operations Alex Harrison will leave IAG under the shake-up. He joined the company in 2010 as COO for its then Australia Direct division. Chief Strategy Officer Leona Murphy will take on additional responsibility for the enterprise operations division.

Ben Bessell, Acting CEO of IAG Commercial Insurance, has yet to be confirmed in the role.