Work on consolidating IAG’s policy platforms will begin in the second half of FY17, the insurer’s CEO, Peter Harmer, told a briefing on the company’s results for the six months ending 31 December.
The consolidation and migration of the insurer’s claims systems to Guidewire ClaimCenter is already under way, with IAG previously revealing plans to move from 32 policy and claims systems to two.
IAG’s systems consolidation program is part of a broader optimisation process that is intended to cut its annual operating expenses by $250 million by the end of FY19.
IAG has “developed a robust roadmap to guide our systems consolidation work over the next handful of years,” Harmer said today.
“Our focus for the second half of this financial year includes the second wave of activities which will involve such functions as settlements and recoveries and will certainly have broader reach and impact across IAG,” the CEO said.
In addition to cutting operating expenses, the insurer intends its optimisation program to boost productivity and deliver improved customer experience.
Harmer outlined a number of initiatives that he said would deliver benefits to the insurer and its customers, including the launch of its $75 million venture fund and plans to open ‘InsurTech’ innovation hub — Firemark Labs — in Singapore.
Harmer said the company is looking at the increased use of aerial drones to quickly assess customers’ claims after severe weather, and potentially for improved risk analysis.
IAG has also been trialling the use of in-home sensors to boost safety. “Many of our IAG staff have been involved in the pilots that we’ve been running across the business,” the CEO said.
IAG posted an insurance profit for the first half of $571 million (down from $610 million in the first half of FY16).