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
"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
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
"[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.