IAG unit considers closure of branch network

State Insurance, a New Zealand subsidiary of Insurance Australia Group (IAG), is consulting with employees on proposals that could see the closure of the bulk of its branch network.

Twenty-one branches are impacted by the proposal, along with 91 employees. The exception is State’s Riccarton branch in Christchurch, where it’s been identified that specific customer needs related to earthquake-related insurance claims justify a different approach.

Craig Olsen, executive general manager of State Insurance, said that the proposal is based on making sure that State has the appropriate structure to meet the current and future needs of customers.

“Insurance is increasingly 24/7. Over the past five years fewer State customers have been visiting our branches and instead are choosing to call us or connect via our website or other online mechanisms at a time that is convenient to them,” he said.

Analysis showed that currently 94 per cent of customers choose to use website or call State when to discuss their insurance needs, make a claim, update their contact details or pay a bill, and that number was growing year-on-year.

“People’s needs are changing and the proposal is that State will focus on supporting customers online and over the phone in a way that leads the market. State excels in servicing through these channels and it is our intention to invest in further developing this capability,” Olsen said.

A final decision on the proposal is expected to be made by mid-October.