Insurer IAG is starting a major cost cut with plans to close all its AMI insurance outlets across New Zealand.
IAG announced on Tuesday that it would review aspects of its direct distribution model, which would see 53 AMI insurance stores close across NZ, along with one its one remaining State store in Christchurch.
Up to 65 retail management store roles will be lost, while another 350 roles will be moved into digital teams and contact centres.
Customer and consumer executive general manager Kevin Hughes said the proposal was not taken lightly, as the stores had been in local communities for many years.
However, the review reflected growing customer expectations for digital services, Hughes said, according to NZ media reports.
“Covid-19 has accelerated many trends within the insurance industry and in the broader operating environment…Customers expect more digitally, and we are focussed on delivering that for them.”
The company was exploring new services, such as virtual face-to-face meetings, while customers would still be able to contact call centres.
“For several years, we’ve seen a decline in visits to our retail stores, as customers increasingly look to engage with us over the phone, via email and through our online platforms and digital channels.”
Hughes said IAG’s NZ specialist customer care team, which was temporarily established as part of its Covid-19 response, would be made a permanent service.
In NZ IAG trades under the brands AMI, State, New Zealand Insurance (NZI), National Auto Club Underwriters Agency (NAC), Lumley and Lantern.
