QBE has outlined the thinking behind a strategic reshuffle that resulted in dozens of managerial roles being made redundant.

As reported in yesterday’s Breaking News bulletin, informed sources claim more than 50 managers have been laid off, including regional managers and key broker relationship executives.

But Australia and New Zealand CEO Vivek Bhatia told insuranceNEWS.com.au the new staffing structure is the result of a “clear plan” to create a stronger and simpler company, with a renewed customer focus.

QBE’s “2021 ambition” includes three main goals: to be number one choice in commercial lines; build strength in personal lines; and be innovative in SME.

Mr Bhatia says “structure follows strategy”, and the views of broker partners also played a crucial role.

“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 that we have people empowered to make decisions seamlessly. That has been the underpinning principle.

“We want to make sure that as an organisation we have the right people in the right roles in the right structure to be able to deliver the customer promise.”

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.

“As organisations change and the scope or scale [of a role] changes, we owe it to our people to let them make a decision for themselves and it is our role as an employer to support them through that process, and do it in the most respectful and dignified way.

“These people have significantly contributed to the organisation and I have a huge amount of respect for them.”

QBE says while some roles no longer exist, many have also been created and the net headcount reduction is 15.

The new divisional structure, effective immediately, is made up of 11 Australia and New Zealand teams sitting below 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; NZ GM Bill Donovan; CFO Chris Killourhy; Chief HR Officer Eleanor Debelle; COO Renee Roberts; Chief Risk Officer Fiona Hayes-St Clair (interim); 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 long-serving manager Peter Klemt will leave QBE early next year. However, he will lead the new team during the transition.

A new Commercial Underwriting team has also been established, led by Karen Robinson on an interim basis.

The creation of these two teams means the role of GM Broker Distribution no longer exists and Jason Hammond “will continue to support the transition while he explores other opportunities within QBE”.

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