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HBF to exit general insurance business

HBF will stop providing general insurance products after entering into an agreement with Insurance Australia Limited (IAG) to exit the business.

HBF
2 minutes

From 1 July 2021, HBF will no longer sell home, motor, landlord or leisure insurance.  For an existing HBF general insurance member there will be no change to their existing policies.

From 1 November 2021, IAG will commence sending policy renewal invitations. IAG is Australia’s largest general insurer behind leading brands such as NRMA Insurance, CGU Insurance, SGIO and WFI.

HBF will directly contact its general insurance policyholders over the coming weeks to provide further information about the changes and the ongoing support and service available from IAG. HBF’s health insurance products are not impacted.

Selina Torrance, HBF Executive General Manager – Member Experience, said the decision simplified the business and would better enable HBF to focus on key strategic initiatives for its members.

“We have a clear strategy to build on HBF’s strong foundation as a purpose-driven organisation that delivers for its members in the moments that matter,” Ms Torrance said.

“Exiting general insurance reduces the complexity of the HBF business, enabling us to sharpen our focus on key initiatives already underway such as growing our health insurance business on the East Coast, becoming a more active participant in health services, and delivering on a major investment program to upgrade our systems.

“We are building strong momentum with private health insurance membership growth on the East Coast, expansion into adjacencies through our successful Pharmacy 777 alliance and the recent launch of HBF Dental, and a suite of technology enhancements.

“By delivering on these initiatives HBF will have greater scale and diversity, enabling us to continue keeping downward pressure on premium increases and providing value for our members.

“It was important that any agreement HBF entered into ensured our general insurance members were looked after and our decade-long partnership with IAG has given us the confidence that they will be.”

In 2011, HBF sold its non-life general insurance business to IAG and entered into a Distribution Agreement for HBF-branded general insurance products to be underwritten by CGU Insurance.

IAG Executive General Manager Customer Growth Steven Fitzpatrick said IAG welcomed the opportunity to continue to support HBF policyholders.

“We’ve been a proud partner of HBF and helping its members with their general insurance needs over the past decade,” Mr Fitzpatrick said.

“We look forward to the opportunity to continue to build on these relationships into the future.”

HBF is supporting a small number of employees who may be impacted by the decision to exit the general insurance business. 

Contact: Lauren Underhill, HBF Corporate Affairs, CorporateAffairs@hbf.com.au / 0438 925 050

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