CGU’s incoming CEO said nine years ago that collaborative relationships between insurers and brokers, professional education and good technology systems would underpin the future success of the general insurance industry in Australia.

Peter Harmer was named last week as the person who will replace Duncan West at the helm of the Melbourne-based insurer.

Mr West’s resignation to spend more time with his family in Sydney was reported in an insuranceNEWS.com.au Breaking News last Wednesday.

Mr Harmer was interviewed by Insurance & Risk Professional magazine in its December 2001 edition while he was CEO of Aon Australia. He said then that the industry would have to continue to invest heavily in professional education and that “attracting people to the industry is going to be an issue that won’t go away”.

Mike Wilkins, CEO of CGU parent company IAG, says Mr Harmer’s 30-year career has included senior roles in underwriting, claims, reinsurance broking and commercial insurance broking.

“During his time as CEO of Aon UK, he led a significant turnaround in the business,” Mr Wilkins said. “Before that he led Aon’s Australian operations, significantly growing the business while delivering an improved operating margin.

“His depth of experience, established relationships and proven leadership qualities make him a valuable addition to our organisation.”

After heading up Aon Australia for seven years until 2007, Mr Harmer transferred to London as CEO of Aon UK. His recent responsibilities at Aon included being Chairman and CEO of Aon Re, Chairman of the Lloyd’s Market Reform Group and a member of Aon’s global executive board.

He resigned from the UK post in June last year to return to Australia. Several months ago he was reported by a UK insurance publication to have been hired by QBE to succeed group CEO Frank O’Halloran, leading to a sharp denial by the company.

Mr Wilkins says he’s disappointed to lose Mr West from the IAG executive team, but understands his decision to spend more time with his family given the travel involved in his current role.

“Duncan has made a significant contribution during his time as CEO of CGU,” he said. “Under his leadership, CGU has delivered a $130 million improvement in underlying insurance profit over the past two years, placing the business on a clear turnaround path.

“We’re confident the momentum established within CGU will continue as the changes made to improve the business are now fully embedded.”

Mr Harmer will begin work at CGU on November 8, working alongside Mr West until the end of January.

Mr West, who has run CGU for two and a half years, says the decision to move on has been “difficult”.

“However, after careful consideration I believe it’s the right one for my family. My wife and I have adopted two children from India and my priority is to care for and support them.

“Living in Sydney and leading a company based in Melbourne is simply not sustainable in these circumstances.”