Zurich is the latest company to announce job losses in the UK as fierce competition between rapidly-consolidating insurance giants puts pressure on all of them to reduce costs. Some 870 positions will be closed, although current vacancies means the number of employees actually affected will be closer to 570. The company currently employs about 5300 people in the UK General Insurance division.
Insurance has become a commodity to be priced, packaged and distributed with the minimum of fuss – a fact which is well illustrated in the wording chosen by Guy Munnoch, chief executive officer of Zurich’s UK General Insurance business, in his announcement: “Our strategy remains clear. We aspire to being the leading multi segment, multi distribution general insurer in the UK. The development of a platform for growth for our UK GI business will support us in our ambition, enabling us to become more effective and efficient in how we run our business …”
Zurich hopes to cut 10% from its costs by the end of 2008. The job closures are spread across the country. According to initial plans, Zurich’s Fareham operation will suffer most, with 170 jobs slated to close. Birmingham will lose up to 90 jobs and Cardiff up to 70. The Farnborough office will close 50 jobs and Leeds between 30 and 40. A consultation process with relevant unions could continue until September and those affected by redundancy will leave shortly thereafter.
In February, Zurich declared UK profits at 91m for 2007 – a year that was tough for all insurers because of the record flooding. The company’s operating margins were significantly better than most of its rivals.
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