Former Vero CEO Duncan West has returned to the upper ranks of the insurance industry as CEO of IAG's commercial arm, CGU Insurance.

Mr West, who was passed over by Suncorp following its takeover of Promina last year, began work at CGU last week as the replacement for Mario Pirone, who has left to "pursue other interests". Mr Pirone ran the Melbourne-based company from Perth for much of last year.

Mr West is back working with his former boss, Mike Wilkins, the former CEO of Promina, who is now COO of IAG, running all the group's Australian and NZ operations.