HBF’s General Insurance business will be sold to CGU, a division of IAG, according to the West Australian.
HBF’s MD Rob Bransby has explained the sale by saying it became clear HBF’s interests would be better served as a distributor rather than manufacturer of General Insurance products. He said HBF would continue to distribute competitive General Insurance products but these will now be provided by an insurer who has the advantage of size.
In recent years Western Australia’s General Insurance sector has seen the entry of large overseas, eastern states-based and online insurers and Bransby said, “It’s become clear to us that it will be increasingly difficult for HBF to compete effectively as a small local player against insurers who have massive advantages in terms of scale and technological infrastructure.”
Bransby said the CGU was chosen due to a strong cultural fit. He also said that a critical consideration was also CGU’s agreement to employ the great majority of HBF’s general insurance team in Perth.
HBF-branded products such as home and contents insurance, motor insurance and travel insurance will be distributed by HBF and underwritten by CGU over the next ten years. HBF is a not-for-profit health fund based in Western Australia, while CGU is a division of IAG, the second largest insurance group in Australia.
This story has been sourced and edited from the West Australian.
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