Zurich Insurance to Cut 342 UK Jobs by 2015
April 27, 2012 by Robert O'Connor
Best’s News Service – April 26, 2012 02:52 PM
LONDON – Zurich Insurance Group Ltd., which provides a range a life and nonlife insurance products in the United Kingdom, has announced the elimination of 342 U.K. jobs by the end of 2014.
The job cuts, which will affect customer services and claims, will take place in England, Wales and Scotland. The biggest losses will be in Whiteley, south of London, and in Cardiff in Wales. Zurich said it will also eliminate 51 jobs from its personal lines claims team in Pune, India by the end of 2012.
“We recognize that these changes mean difficult messages for some of our employees, and we are committed to minimizing the impact on people by reducing job numbers through redeployment, natural turnover and voluntary measures wherever possible,” said Karl Bedlow, personal lines managing director, in a statement.
Bedlow said Zurich is committed to adapting to “constantly changing market conditions” by creating a simplified structure and maintaining optimum employee levels.
“We will continue to evolve our U.K. personal lines business to ensure it remains competitive, efficient and profitable,” Bedlow said.
Zurich also announced it will seek to strengthen its partnership in the U.K. car insurance sector with broker-focused management services provider Broker Direct plc. Zurich said it will shift motor and home insurance business to Endsleigh, a subsidiary, and Wessex Group, with which it has an existing relationship.
These announcements represented a further step from the creation of an online car insurance offering in 2011, Zurich said.
“These moves are the latest steps in the evolution of Zurich’s U.K. personal lines business,” the group said, adding that Broker Direct, Endsleigh and Wessex will help control costs.
“The strengthened partnership with Broker Direct combines their IT and systems infrastructure and proven delivery in the broker market, with Zurich’s expertise in underwriting, claims and pricing,” Bedlow said.
Zurich Insurance Co. Ltd. currently has a Best’s Financial Strength Rating of A+ (Superior).
(By Robert O’Connor, London editor: Robert.OConnor@ambest.com) BN-NJ-04-26-2012 1452 ET #