Australian Insurance company AAMI, have revealed their decision to all of the existing branches around Australia in response for consumers demand for more convenient services.

AAMI (Australian Associated Motor Insurers Ltd) has been operating for over 40 years as a leading insurance provider. The company is planning on closing 24 branches Australia wide and shifting the entire business online, affecting around 100 of its staff members.

Servicing over 3 million customers AAMI spokesman has denied the decision is related to cutting costs as well as jobs and has said the move is in response to consumer preference saying “these days the vast majority of business is now transacted over the phone or over the Internet”. The branches are said to only account for 2% of the companies revenue.

Although some consumers may still be sceptical towards using the Internet for service such as insurance, experts believe more and more people are becoming comfortable and trusting with accessing online services and will still be able to make payments to AAMI via the post office if they wish.

Analysts of the wider industry say with the increasing demand from consumers for instant information and pressures on companies to save money where possible, AAMI along with many other service and retail businesses are turning to e-commerce as the solution.

AAMI is owned by banking and insurance giant Suncorp. Some of AAMI’s core products and services include: comprehensive car insurance, third party property damage insurance, home buildings insurance with complete replacement cover, home contents insurance, landlord insurance, and more.

By Krystal Ayoub