Auto & General has secured a significant new role in the insurance market, taking over the underwriting of Coles insurance from Insurance Australia Group (IAG). This new partnership, set to last for a decade, marks a notable shift in the landscape of insurance underwriting.
IAG, which had managed Coles insurance since acquiring Wesfarmers’ insurance underwriting division in December 2013, is stepping back from the partnership. At IAG’s recent full-year earnings briefing, CEO Nick Hawkins downplayed the significance of losing the Coles account. Hawkins indicated that the Coles partnership, which generated only a few hundred million in premiums, was relatively minor compared to IAG’s overall revenue of over $16 billion.
In a related development, Aldi has entered the insurance market, offering policies underwritten by RACQ Insurance. This move adds to the growing trend of supermarkets expanding into the insurance sector.
