Vero Insurance NZ is preparing to restructure following its three-year Christchurch earthquake response program.

It has resolved 76% of claims, paying out $NZ3.7 billion ($3.3 billion), and expects to have “almost all” claims finalised by the end of the year.

Construction is scheduled for completion by the end of next year.

Vero NZ CEO Gary Dransfield says Earthquake Program EGM Jimmy Higgins will become head of Vero’s claims operations by the end of the year, ending the dedicated earthquake response program.

He told insuranceNEWS.com.au the move reflects “the great progress we’ve made with our earthquake program. In essence, our earthquake response will become a project within our claims operations rather than running in parallel as a separate claims operation.”

The insurer will also step up its transformation program, developed during a 2012 strategic review.

The program started last year, but other than isolated “strategic projects”, the earthquake response has had first priority.

A major technology upgrade that began this year – replacing “complex and ageing” legacy systems – will standardise platforms used by Vero on both sides of the Tasman.

“We want to be able to take advantage of Australia’s scale in the New Zealand business,” Mr Dransfield said. 

“We’ll be taking platforms from the Australian general insurance business, which will enable new claims and policy platforms across the New Zealand business.

“It’s not just about new technology. The systems replacement will mean a lot of business change as well, including business processes and potentially changes to our products.” 

Mr Dransfield says a final cost for the systems upgrade will not be available until next year, but it will be “in the tens of millions”. The new systems are expected to be in place in 2017.

Mr Higgins will lead an integrated claims function, including responsibility for quake claims.

Kim Grooby, currently GM Claims, will take on a new executive role.

“Kim will lead the business to deliver improved products and services for our customers through renewed technology platforms and business processes,” Mr Dransfield said.

“This demonstrates our investment back into the New Zealand business.”

Last month former AIG NZ CEO Cris Knell was appointed Vero NZ EGM Commercial & Distribution.