No 1 local insurer IAG plans to eliminate duplication of hardware and software systems over the next year in a bid to reduce technology costs. It has made substantial cuts to computer systems following the termination of its outsourcing agreement with IBM 18 months ago, but is now aiming at IT downsizing to cut costs and streamline data.

IAG is understood to be reducing the systems it uses in its personal injury business from eight to four. It also plans to cut the number of mainframes it runs from three to one, and the number of mid-range servers from 55 to 20.

Earlier this year subsidiary IAG New Zealand hit problems with implementing its new software system, Project Endeavour. The system, which experienced several delays, was developed by UK-based Sirius Financial Solutions. It was said at one point to be costing IAG an extra $NZ1 million a month.