IAG and
Suncorp have defended their companies after Budget Direct’s CEO said
IAG’s acquisition of Wesfarmers’ underwriting business will have
negative connotations for the customer.
During a wider interview on Budget, CEO and MD Ram Kangatharan said the move is likely to limit customer choice as IAG and Suncorp will control around 75% of the home and contents, and motor insurance market across their various brands.
He also suggested that major direct players are only profiting on their existing client base, and avoid aggregators because it will expose their “inferior products and price”.
In response, an IAG spokesman said: “We operate some of the most respected insurance brands in the market and are proud of the way we help customers recover from the hardship of unexpected loss.
“We are excited and see tremendous possibilities for the acquisition we announced this week, which will support our ability to continue to provide our customers with unparalleled product and service offerings.
“We treat all of our competitors seriously and respectfully, and don’t propose to provide a running commentary on what other industry players may choose to say about our organisation.”
A Suncorp spokesman said: “It’s a highly competitive marketplace and customers are voting with their feet when they choose our products.”
