QBE’s staffing restructure, which is aimed at bringing the insurer closer to its customers, is part of a wider industry trend, according to a leading industry commentator.

As reported in a Breaking News bulletin last week, more than 50 QBE managers are believed to have been laid off as part of the restructure, including regional managers and key broker relationship executives.

QBE says the new staffing structure is the result of a “clear plan” to create a stronger and simpler business with a renewed customer focus. It says while some roles no longer exist, many have also been created and the net headcount reduction is 15.

KPMG Insurance Partner Scott Guse says similar changes have taken place at IAG and Suncorp.

IAG undertook significant structural changes last year with the creation of a single Australian division with a focus on “customer-centricity”, and Suncorp’s Marketplace strategy also aims to put the customer front and centre.

“Any industry goes through cycles where there is a restructure of the working environment, and insurers are under a lot of cost pressure at the moment,” Mr Guse told insuranceNEWS.com.au.

“Focusing on the customer has never been more important, and QBE is not alone in this respect. The royal commission has ramped up the pressure and forced insurers to look closely at how they treat customers.”

QBE says it wants to be “easier to do business with”, and Mr Guse says empowered customers “can walk away” if they don’t get what they want.

“We are all time-poor these days, so the easier something is the more likely we are to jump on the bandwagon,” he said.

QBE’s “2021 ambition” includes three main goals: to be the No.1 choice in commercial lines; to build strength in personal lines; and to be innovative in SME.

Australia and New Zealand CEO Vivek Bhatia told insuranceNEWS.com.au the views of brokers played a crucial role in the staffing restructure.

“All of them came back and said, ‘Make sure you’re easy to do business with and make sure there is clarity in terms of us having a conversation with people who are empowered to make decisions’.

“ Our model and our changes are all geared towards that – making sure we have people empowered to make decisions seamlessly. That has been the underpinning principle.”

Mr Bhatia says consultation was carried out and employees were offered the chance to stay with QBE.

“We gave them a choice about doing a different role in a different way, or the opportunity to leave and take the next step of their journey. Some of them have decided to stay, some have decided to leave. At the end of the day, we respect individual prerogatives.”

The new divisional structure, effective immediately, comprises 11 Australian and New Zealand teams answering to Mr Bhatia.

The leaders of these teams are: Chief Claims Officer Jon Fox; Chief Customer Officer Commercial Lines Jason Clarke; Chief Customer Officer Credit Lines Phil White; Chief Customer Officer Personal Lines Frank Costigan; New Zealand GM Bill Donovan; CFO Chris Killourhy; Chief Human Resources Officer Eleanor Debelle; COO Renee Roberts; Chief Risk Officer (interim) and Chief Strategy Officer Fiona Hayes-St Clair; and Chief Underwriting Officer Declan Moore.

Former Chief Customer Officer Bettina Pidcock has been made Chief Marketing Officer, reporting to Ms Roberts. Pita Williams continues as General Counsel, reporting to Mr Killourhy.

insuranceNEWS.com.au has obtained additional information that gives a further breakdown of the commercial team under Mr Clarke.

There will be six specialist teams, including a newly created Sales & Relationship Management team responsible for “building, developing and supporting” relationships with brokers. The National Service team will become part of the Sales & Relationship Management team.

The team also includes four new regional heads, replacing the previous regional management structure.

The GM business development role no longer exists, so Peter Klemt will lead the new team during the transition and leave QBE early next year.

A new Commercial Underwriting team has also been established, led in the interim by Karen Robinson.

The creation of these two teams means the GM broker distribution position held by Jason Hammond no longer exists. Mr Hammond “will continue to support the transition while he explores other opportunities within QBE”.

The other four leaders in commercial are GM Specialty Dean Cullen, GM Elders Insurance Andrew Corbett, GM SME Aaron Gavin and GM People Risk Rob Kosova.