Equity's satellite offices are a key move for the insurance group
Equity’s opening of a string of regional underwriting offices is an important strategic move for the insurance group.
The group, which was acquired by Insurance Australia Group (IAG) last year, has already opened underwriting branches in Glasgow and Leeds. Further regional branches are planned.
The launch of satellite underwriting offices forms a key plank in IAG’s strategy for developing its UK businesses, which comprise broker Hastings Direct, Equity Group, motor insurer Advantage and recently acquired broker Bartlett & Bartlett.
The regional underwriting offices, which will be part of Equity’s underwriting arm Equity Red Star, will focus on building the insurer’s motor fleet business.
Other initiatives include broadening its commercial lines business, of which developing a commercial underwriting presence through Equity Red Star will form a part.
IAG’s acquisition of broker Barnett and Barnett two weeks ago will act as an spring board for its commercial lines growth.
Tackling the operational issues faced by Advatage and Hastings are also a key challenge for IAG. Advantage has been making underwriting losses, owing to pricing too cheaply, and IAG UK boss Neil Utley has been focused on returning it to profitability. As Insurance Times reported earlier this month, Utley predicts that Advantage will make a profit in 2009.
