The Australian general insurance market is still flat “although it’s not in freefall”, says Zurich Australia CEO David Smith.

He says the property classes are proving the toughest areas to compete in, and there’s no sign of the situation changing yet.

“There’s so much capacity around it’ll take something big – on the scale of a catastrophe of the size of Hurricane Katrina – to really tip things over,” he told insuranceNEWS.com.au.

Mr Smith was commenting on Zurich Australia’s continuing development of a new general insurance structure more capable of thriving in a tough market.

As reported last week by our Instant News bulletin, GM General Insurance Shane Doyle has moved responsibility for all operations in the states – with the exception of claims – to state managers.

“We’re quite rapidly getting to where we want Zurich to be in Australia,” Mr Smith said.

The state managers, who will report to COO Daniel Fogarty, are: Sean Walker NSW; Chris O’Connor Victoria; Damien Gallagher Queensland; Mike Rumac WA; Paul Dorman SA; and Tony Maher Manager Regional Australia.

Mr Walker was previously National Underwriting Manager Accident & Health. He will be replaced in that role by Richard Parkinson, who is at present the Head of Distribution in Zurich’s NZ operation.

Claims staff will continue to report to the Sydney-based claims management team headed up by Stephen Brooks.

Associated Marine state managers will now have a local functional reporting line to Zurich state managers, with a reporting line to Associated Marine’s Head of Distribution, Tim Air.

Zurich is also changing the name of its automated business solutions managers. This area will now be called SME & Packages and will report to the state managers, with a reporting line to Head of SME & Packages Shaun Feely.

Mr Smith says Zurich’s general insurance staff have “accepted the changes well. They understand and support what we want to achieve.”

The Australian life insurance, superannuation and managed investments operations face “different issues”, he said.

“The sales team is punching well above its weight in a tough investment market. We want to be well set up for when confidence returns to the market.”