Insurer tipped to move more than 100 jobs overseas

IAG and its subsidiary NZI are tipped to be moving jobs off-shore. Photo/Supplied.

The country's largest insurance company is tipped to be moving more than a hundred jobs overseas.

The Herald understands IAG, which has about 40 per cent of the general insurance market, could be set to shift 55 jobs from its NZI insurance business and a further 77 from the parent company.

The roles are currently based in Christchurch but would be done by overseas partners, according to an unnamed source.

An IAG New Zealand spokesperson said an "operational partnering project" was under way affecting approximately 141 positions involving some parts of its Christchurch operation. Positions affected by the project could be moved to the Philippines.

"We are consulting extensively with our people, and our People & Culture team is working with each impacted staff member as they consider their options, including redeployment within IAG New Zealand," the spokesperson said.

"Redundancy will be available to any of our people who have not found alternative employment arrangements at the end of the transition period, and six weeks formal notice of disestablishment will be given to people in that position as per the terms of our employment agreements.

People were being offered career transition support with group workshops, one-on-one coaching and redeployment and outplacement "to ensure those who no longer have a role are equipped with the skills to find alternative employment, either within IAG or elsewhere".

"As with any business operating in a commercial environment, we must balance remaining relevant to our customers while providing products and services they want and need at a price they can afford, " the spokesperson said.

We face a changing insurance market, with rising costs and frequency of claims.

IAG New Zealand

"We face a changing insurance market, with rising costs and frequency of claims. To ensure our long term sustainability as a provider of insurance we need to ensure we keep it affordable for New Zealanders."

IAG would not be the first major insurer to move New Zealand roles overseas.

In March last year Suncorp New Zealand - owner of Vero, Asteron and half of AA Insurance - confirmed plans to offshore a number of its back office jobs.

At the time Catherine Dixon, executive general manager people experience at Suncorp New Zealand, said it had announced a proposal to transfer a number of New Zealand-based administrative roles to its strategic partners in Asia.

Dixon said the decision was not about reducing headcount.

"By moving some roles offshore, and creating new roles here in New Zealand, Suncorp New Zealand will increase the capability of its business, and improve the service we provide our customers."