IAG will withdraw its IAL brand, consolidating its offerings of personal lines products in the broking space under its CGU label instead.

The insurer announced the changes today, saying the decision followed a “comprehensive” review of its Broker Personal Lines business. The review examined the most effective way for IAG to provide products and services to that part of the market.

IAL distributes motor, home and landlord products exclusively via the Steadfast Client Trading Platform (SCTP). It will cease writing new business from November 1 and renewals from December 1.

The brand was launched in March 2017, two years after the business was transferred to IAG from Berkshire Hathaway in June 2015 as part of the pair’s strategic relationship.

CGU will join the SCTP marketplace by the end of this financial year, selling personal lines products through Steadfast brokers.

insuranceNEWS.com.au understands the IAL team of about 20 employees will be offered redeployment opportunities in other IAG businesses.

IAG CEO and MD Nick Hawkins says the business is dedicated to continuing to provide its brokers and partners with the best possible products and services.

“On my first day as CEO I established a dedicated Intermediated Insurance business to focus on the needs of our brokers and partners who play such an important advisory role for their clients to ensure their assets and businesses are protected,” Mr Hawkins said.

“We believe consolidating our product offering for the Broker Personal Lines market under the CGU brand is an important step in simplifying our business and ensuring we can provide the best possible products and experiences for our valued brokers and partners.

“Through CGU we’re well placed to succeed in this market, and we intend to support more brokers in harnessing our established brand, trusted relationships and strong core insurance capabilities.”

He says the immediate priority is to work with Steadfast and its broker network to ensure a smooth transition for its customers and their clients.

Steadfast CEO and MD Robert Kelly says the broker network will work closely with IAG to add the CGU personal lines offerings onto the SCTP marketplace as soon as possible.

“We have a longstanding and strong relationship with IAG and we understand its desire to have a one brand strategy through CGU to provide personal lines insurance products to the broker market,” he said.