Insurance Australia Group subsidiary CGU has mapped out a five-year IT transformation to simplify the way the company handles its business.
CGU managing director Duncan West said that the company was in the early stages of defining the transformation focused on IT systems for claims, management information, distribution and policy administration as well as workers compensation.
There were over 20 major claims systems, multiple distribution platforms and multiple sources of management information, he said.
"All of this is an impediment to driving down cost, improving underwriting, improving claims management and account management effectiveness and being able to respond rapidly to opportunities."
He said that since becoming CGU chief executive in January 2008, he had spent a lot of time with staff and customers.
"I watched the processes and systems environment in which they operate and it was obvious that we needed to improve our processes and our technology," he said. "Over the last 10 years there has been a significant underinvestment in technology. This has led to a complex and inefficient systems environment."
The transformation would start next year with a series of IT upgrades.
"[It] will drive efficiency through system consolidation, introduce common processes across business and segments where appropriate and reduce our systems risk," he said.
Much of the money for the transformation would come from CGU's business as usual spend, he said, although there would be some money poured into it as well. He declined to say how much it would cost in total.