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IAG hails cost-cutting benefits

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IAG cut at least 40% of management positions in last year’s restructure, according to CEO Australia Mark Milliner.

He told an investor day in Sydney last week the restructure of IAG’s Australian businesses into a single division last July created no impact on customer experience.

The new operating model was implemented in five months, he says.

The company is on course to achieve a $250 million reduction in controllable costs at the end of next financial year, according to Mr Milliner.

EGM broker business Donna Walker and EGM customer delivery Fiona Phillips were among hundreds of CGU employees to leave IAG in the reshuffle.

Mr Milliner has also heaped praise on IAG’s new call centres in the Philippines and India.

Payroll, recoveries, settlements, accounts payable and receivable, policy processing, webchat, compulsory third party payments and other tasks are managed offshore.

Mr Milliner says he has watched a call centre officer serve three customers at once on webchat. Customer demand for the new call centres has been almost double that expected and is growing, he says.

IAG has also reduced its property footprint, downsizing from four buildings in the Sydney CBD to a single building at Darling Park.