Insurance industry to axe jobs

Fri, 15 Sep 2006

Fear of large job cuts in the insurance sector blossomed today, following an announcement by the owner of Norwich Union, Aviva. The company said that it plans to axe as many as 4,000 UK jobs by 2008.

Apparently, 1,000 of these jobs would be directly transferred to India, whilst the remaining 500 positions could be contracted out. The company are looking to save money through the cuts, by lowering duplication throughout their industry.

Aviva released a statement to the stock market, saying: "The company will seek to minimise the number of compulsory redundancies through natural staff turnover and voluntary measures."

The chief executive of Norwich Union, Patrick Snowball, said: "We have to ensure that Norwich Union remains a highly efficient and effective company in what is an increasingly competitive and dynamic environment. Customers' buying habits are changing rapidly as technology becomes more accessible. Already half our new direct motor insurance policies are purchased over the internet ."

Aviva are apparently looking to reduce their UK workforce from 36,000 to 32,000 with the aim of saving the company £250 million per year. The company already has 5,250 workers in India. The Unions are up in arms about the cuts, calling them a ‘betrayal.’
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