Making IAG simpler and more agile
IAG is working to become a simpler, more efficient and agile business. Reducing from nine to two the number of insurance licences we hold will help us achieve this and allow us to use our resources to provide a better service to our customers.
To reduce our licences, we have applied to the Federal Court of Australia for confirmation of seven schemes to transfer all the insurance business from seven of our licensed insurance entities into a related company called Insurance Australia Limited ABN11 000 016 722 (IAL) on or about 1 August 2017.
The seven insurance entities are:
- CGU Insurance Ltd ABN 27 004 478 371
- Swann Insurance (Aust) Pty Ltd ABN 80 000 886 680
- WFI Insurance Ltd ABN 24 000 036 279 (which currently underwrites Coles Car, Home & Landlords Insurance, Lumley and WFI general insurance policies)
- CGU-VACC Insurance Ltd ABN 73 004 167 953
- Mutual Community General Insurance Pty Ltd ABN 59 007 895 543
- HBF Insurance Pty Ltd ABN 11 009 268 277
- IAG Re Australia Ltd ABN 96 001 948 278
What does this mean for customers?
The proposed transfer will have no impact on people who hold policies issued by these insurance entities.
The terms of policies will not change after the transfer other than IAL becoming the insurer under each transferring policy; there will be no impact on claims; and policies will continue to operate and be renewed in the same way.
No action is needed but if policyholders wish to object, they have the right to attend and ask to speak at the Court hearing.
What happens next?
Transferring the insurance business into IAL requires a scheme which has to be reviewed, and then confirmed, by the Federal Court of Australia.
There are seven schemes happening at the same time, one for each of the separate IAG businesses that are being transferred into IAL. From the date the schemes are confirmed, IAL will become the insurer of all policies issued by the companies listed above.
Attending the Federal Court of Australia Confirmation Hearing
Anyone who wishes to object to the scheme has the right to attend or request to be heard at the Court confirmation hearing. We expect the hearing to be held at the New South Wales registry of the Federal Court of Australia in July 2017. If you would like some more information about the hearing please call our lawyer, Mr Kemsley Brennan of MinterEllison, Level 40, Governor Macquarie Tower, 1 Farrer Place, Sydney NSW 2000 (telephone (02) 9921 8888), at least three days before the hearing date.
The proposed hearing date for confirmation of the Schemes is 20 July 2017.
Copies of the key documents related to the proposed transfers are now available:
Summary of schemes for the general insurance transfers: