CGU will continue to increase rates across selected commercial and personal lines, says newly installed CEO Duncan West.

He says premium hikes are the best way to combat the soft market.

"After four years of intense competition and falling premiums, the reported profitability across the commercial insurance sector has relied on unsustainable levels of prior year reserve releases," Mr West told insuranceNEWS.com.au.

"CGU began responding to this challenge late last year by progressively introducing targeted rate increases focused on underperforming short-tail commercial and personal lines portfolios. I wholeheartedly support this approach."

He says he will work closely with the insurer's leadership team over the coming months as he spends his time "listening and learning about CGU".

Mr West is candid about the challenges in moving from Vero to IAG's commercial arm. "It's very different observing a company as a competitor than working for it.

"CGU operates in different markets from the last company I worked for and has very different strengths."

But it will be "business as usual" as CGU combats the "intense competition in the market".