Compare Credit Cards
- Credit Cards Home
- Balance Transfer Rate
- Low Interest
- No Annual Fee
- Reward Credit Cards
- Business Credit Cards
- Gold & Platinum
- Debit Cards
Compare Banking
Compare Loans
Compare Insurance
- Insurance Home
- Health Insurance
- Home Insurance
- Life Insurance
- Motor & Bike Insurance
- Travel Insurance
Investment Providers
Links
Suncorp Outlines Cost Savings Plan
Banc-assurance company Suncorp-Metway says that it intends to improve its general insurance underlying profit margin by at least 3 per cent over the next couple of years as it seeks to simplify the structure of the business.
Group chief executive Patrick Snowball says the company has targeted $235 million in annual cost savings that can be achieved by 2013 through simplification, and a further $120 million that can be obtained through cuts in discretionary spending.
“Our move to a functional model and a single view of pricing and claims will ensure the general insurance business leverage’s scale advantages across all of its brands and unlocks the potential in functional capability that has not been realised to date,” he said.
Mr. Snowball says that the lenders simplification of pricing and claims will eliminate duplication and allow it to leverage its scale across multiple insurance brands which include AAMI, GIO and Vero..
“Our insurance business holds a clear advantage over competitors because of its scale, its industry-leading suite of brands, and the fact that we have end-to-end control of our own manufacturing, pricing and distribution channels,” he said.
Suncorp is planning on transforming personal insurance into a single pricing and claims model, shifting away from its previous strategy of maintaining a portfolio of separate businesses. Suncorp believes this will boost underlying insurance margins.
“One pricing system and one pricing team gives us a consistent view across the portfolio and minimises conflicts between brands, which will help lift yield on new and renewal policies.” Mark Milliner, head of the group’s personal insurance arm said.
The banc-assurer also plans on simplifying its commercial insurance business, and reduce the level of duplication, whilst containing expenses, and leveraging scale in its risk selection, pricing and procurement.
The group aims to boost market share, particularly in the small-to-medium enterprise.
Compare Australian Insurance Deals
Related posts
Comments
Leave a Reply