IAG’s Endeavour project collapses

The collapse of insurance giant IAG's $50 million IT project means State Insurance and NZI will both process claims in Melbourne.

The three-year Endeavour project to build a single customer account management application for IAG's two local subsidiaries was abandoned late last week.

IAG NZ chief executive David Smith said delays in the Endeavour project, which involved modifying software from British supplier Sirius, meant it could not achieve its promised benefits.

He said work on the new Huon Bonus system would start early next year and should be completed by late 2006.

It will be run from IAG's Melbourne mainframe. The existing State application, written in Cobol, is also mainframe-based. NZI would continue to manage its customers on the Polisy system used before the merger.

Smith said the work was not all wasted, as enhancements identified for Endeavour could still be incorporated in the new project.

System integrator CGNZ was told last week Endeavour was scuttled. Managing director Alan Sinclair said his firm's contract with IAG meant he could not comment.