IAG in New Zealand has foreshadowed major organisational changes as it absorbs the Lumley General Insurance business it acquired from Wesfarmers.

EGM of Transformation Dan Coman says the shake-up is “significant internally” but will have “little or no impact” externally.

Areas facing change include the NZI and Lumley business units, and IAG’s centralised “shared service” teams such as claims services, personal pricing and underwriting, finance, risk and compliance, legal, technical, and human resources.

The proposed streamlining of the commercial businesses seeks to address “double-ups and clarify roles and functions within teams”.

The company says “until consultation on the proposals are completed, IAG will not speculate on potential job impacts”.

It completed the purchase of Lumley on June 30 and has since been reviewing its structures.

IAG’s direct insurance unit, State, is also undergoing a restructure, which could result in 21 of its 22 branches closing as customers opt for online transactions. The final decision is expected next month.

EGM Craig Olsen says the aim of the State shake-up is to ensure the unit has an “appropriate” structure to operate in an “increasingly 24/7” insurance market.

The direct insurance division  includes AMI Insurance, which has a 65-strong branch network. There are no plans to close AMI branches.

“Over the past five years fewer State customers have been visiting our branches and instead are choosing to call us or connect via our website or other online mechanisms at a time that is convenient to them,” Mr Olsen said.

Research shows 94% of State customers choose to use the website or phone services.

The State branch most likely to survive is at suburban Riccarton in Christchurch, where customer needs relating to earthquake claims are seen to justify a different approach.