Consolidation of IAG’s claims systems into a single platform is “well advanced,” according to the insurer’s CEO, Peter Harmer.
IAG in late 2016 revealed it planned to simplify its core policy and claims products, processes and platforms.
The insurer said that as part of its broader optimisation program to slash operating expenses by $250 million it would consolidate from 32 policy and claims platforms to two, expanding its use of GuideWire ClaimCenter for claims management.
Harmer said today that all motor claims and most of the group’s home insurance brands are now on board.
“We expect the claims consolidation to be largely complete by the [end of the] current financial year and as such it remains one of our key priorities for the second half,” he told a briefing on the group’s half year results.
Responsibility for the consolidation push sits with IAG’s Operations division.
Harmer said that IAG’s incubation hubs in Sydney and Singapore — Firemark Labs — have been “very active”.
“We’ve partnered with three startups as we take their products to market and a further two are now in residence in Sydney as they work with our teams and our customer insights to solve challenges and create new opportunities for our customers,” the CEO said.
“The emphasis here is on driving innovation through collaboration and investment in future capabilities,” he added.
IAG has a number of products and services that are currently undergoing market testing, including Sharecover (host property rental insurance), Safer Journeys (a car insurance product that rewards customers for limiting mobile phone use while in vehicles), Poncho insurance (which combines motor and contents insurance), Insurance-4-That (insurance for individual items) and pet insurance.
The $75 million Firemark Ventures fund, which was launched in December 2016, assessed more than 100 potential investments in the first half, Harmer said.
“To date, almost $10 million of the $75 million committed has been investment, but we only see this rising as we identify new opportunities, particularly in areas that have the potential to disrupt the insurance value chain or which can meaningfully enrich customer experiences,” the CEO said.
Investments have included security company Upguard, analytics platform Hyper Anna and Life360, a location-sharing app.
AI and data
IAG revealed that during the half, the company’s Customer Labs division rolled out a “voice-activated AI capability to gain insights from IAG’s enterprise data hub”.
Customer Labs has also been testing an API-based partnering approach for select applications, IAG said, as well as expanding its use of cloud.