IAG will no longer offer a no-claims bonus on CGU private motor policies, as the commercial business transitions to a claims-based pricing model.

Claims history and safe performance will continue to be reflected in premiums under the change, which CGU says is in line with the market.

The insurer says it is strengthening its technical capabilities to underwrite and price risk as it migrates to its Commercial Enterprise Platform.

“Claims-based pricing removes complexity and is a modernised pricing approach that enables insurers to more accurately reflect the risk indicated through claims history while also recognising drivers for their safe driving,” IAG told insuranceNEWS.com.au.

The change takes effect from June 9.