National Australia Bank (NAB) has no plans to outsource its Australian commercial insurance operations despite last week’s deal withAXAin the UK to take over the provision of commercial insurance products and services to three of NAB’s UK banks.
The UK alliance is driven purely by the bank’s strategy of expanding its UK presence rather than part of a wider initiative to mirror the deal in Australia, National Wealth Management Europe chief executive officer Garry Mulcahy says.
Unlike Australia, the risk business in the UK has predominantly been outsourced and Mulcahy, who reports through to Sydney-based head of wealth management Peter Scott, says the alliance is a strategic necessity.
“[The deal] will ensure that our energies and resources are devoted to our strengths of customer relationship management and distribution,” Mulcahy says.
The agreement with AXA follows a range of other developments in NAB’s UK insurance operations.
Last year NAB announced an alliance with Legal and General to offer life assurance and protection and also formed an alliance with Junction, a part of the UK’s Budget group of companies, to provide product and administration services for its home and motor insurance operations.
“The agreement with AXA is another step in our aim in the UK to drive organic growth from strategic alliances in our insurance operations,” Mulcahy says.
The banks affected by the latest alliance are the NAB-owned Clydesdale, Yorkshire and Northern Banks.
