Reductions in property costs, further outsourcing initiatives and streamlining of IT systems are expected to drive more than $250 million a year in cost savings at insurance giant IAG by the end of 2019.

Chief operating officer Mark Milliner said on Thursday that 32 claims and policy systems would be consolidated into two. A move towards hot-desking and a reduction in staff numbers would enable the company to cut its property bill by 16 per cent, while further savings would be made by outsourcing of accounts payable and receivable and payroll functions.