The Innovation Group, a global provider of outsourcing services and software to the insurance, fleet, automotive and property industries, is to establish a new division which will be headquartered in Caerphilly creating 77 new jobs.

The £1.6m investment over two years is supported by £995,000 business finance from the Welsh Government which ensured the project was secured for Wales.

The new division, Innovation Group Underground Services, will specialise in managing insurance claims for damage to property caused by drainage and subsidence problems. It will offer a total service from handling claims to repairing damage.

Welcoming the news, Economy Minister Edwina Hart said: “I am delighted this important investment was secured for Wales, with the headquarters of this new division located in Caerphilly. It is another significant boost for the financial and professional services sector in Wales – one of our key economic growth sectors.

“The Innovation Group is a global blue chip organisation and its investment in Wales will make an important contribution to what is a strong, rapidly expanding sector. The investment will create a wide range of new, well paid jobs and send out a strong message that Wales is a great location for businesses looking to expand and diversify.”

The 77 new jobs, to be created over the next two years, will be a mix of managerial, supervisory and professional roles.

Managing director of Innovation Property UK, Paul Irvin said: “We are thrilled to be working with the Welsh Government in establishing a new office for this exciting business venture, utilising the skilled workforce from the Welsh Region. After conducting a thorough review of the UK labour market, Wales was a perfect fit for us and we are looking forward to significantly developing and growing the business”.

The new division will offer a pan UK service and specialise in Underground Services dealing with all subsidence related drainage work and accidental damage to drainage.

Damage emanating from faulty or broken drains is a common source of subsidence with around one in five claims resulting from leaking drains that can subsequently cause erosion beneath building foundations.

Paul Wozencroft is the new MD for the division which will be based at Britannia House, Caerphilly Business Park. He has over 25 years’ experience in insurance and has specific experience of claims management and the drainage and water industry.

The Innovation Group employs over 2,800 professionals globally with 650 in the UK, and offers a complete insurance service – from providing initial quotes to handling and settling claims to managing repairs.

It has more than 1,100 clients including 80 per cent of the top 20 global insurance companies. It processes more than four million claims and incidents a year on behalf of clients.