IAG New Zealand will shed 141 jobs under an “operational partnering project” to relieve cost pressures and stay competitive.

The insurer has not said where the positions will be outsourced to, but local media has named the Philippines as the likely destination. The move will affect parts of the Christchurch operation

“As with any business operating in a commercial environment, we must balance remaining relevant to our customers while providing products and services they want and need at a price they can afford,” an IAG New Zealand spokesman told insuranceNEWS.com.au.

“We face a changing insurance market, with rising costs and frequency of claims. To ensure our long-term sustainability as a provider of insurance, we need to ensure we keep it affordable for New Zealanders.”

IAG managers are working with affected staff to explore their job options, including redeployment in the company and career transition support.

Similar “global partnering” initiatives in the Australian operation have yielded dividends, IAG Australia says.

“We have entered into agreements with global providers that support our business and, as these partnerships mature, we are seeing increasingly positive business results.

“This has allowed us to achieve benefits such as meeting the needs of our customers more efficiently, and enabling IAG to invest in other parts of the business.

“This includes the creation of more roles in areas where we develop products and services to meet our customers’ changing needs.”