Two prominent motor underwriting agencies plan to merge later this year, with the aim of boosting their focus on new product development.
Austruck and Cabsafe will merge to form the Australian Transport & Logistics Insurance Group (ATL) from November this year.
“There will be some client-focused strategic gains as a result of the merger and a renewed focus on new products and growth opportunities,” incoming ATL CEO Steve Nichols says.
“We will have a much larger scale and depth of expertise. As we see opportunities, we are planning to develop products that will fit into those opportunities.”
Nichols says that transport and logistics are primed for growth moving into the future, with the delivery of goods and services continuing despite disruption.
“If you look at the economy as a whole, transport and logistics is one of the few areas that is pretty much immune from the commoditisation of the internet. In fact, it’s going to benefit from that,” Nichols says.
“We aim to grow into that entire area of the economy.”
The new management team includes Nichols, Head of Underwriting Barry Kearney and Operations David Burgess.
Existing staff will be retained and the business will be majority owned by the executive management team. Branding on existing products will remain for the purpose of continuity with existing services.