ABI moves from Gresham Street HQ to cut costs
The Association of British Insurers is to move from its expensive Gresham Street headquarters to cut costs as the trade body is faced with falling membership.
After Aegon UK left the ABI in September, questions were raised about its ability to hold onto its big members, especially in light of L&G leaving towards the end of 2014.
This has been followed by a series of reforms, which include the move away from Gresham Street and other structural changes at the trade body, such as creating an associate membership scheme to attract smaller members.
ABI communications officer Caroline Jones has said the trade body is still working out what its new associate membership will involve and how it will work.
Ms Jones said: “Associate membership will give these companies some very useful access to the work we do, and we are sure that the insurance and long-term savings sector as a whole will benefit from the increased level of cooperation across the sector.”
According to official documents, the ABI’s lease on its City of London headquarters will run out in March 2016. The ABI will move to new headquarters at 1 America Square in the City early next year.
The move was announced by ABI chairman Paul Evans at the trade body’s biennial conference on 3 November.
Mr Evans said: “The ABI modernisation programme will be helped by an opportunity to move out of the very expensive and rather musty premises in Gresham Street.
“This offers a modern office facility, with much improved facilities for all our members, big and small, at a substantially lower cost to members.”
The building at 51-55 Gresham Street was bought in November 2014 by AG Beltane 55 Gresham BV for £43.5m. The new owners have submitted a planning application to the City of London Corporation to completely remodel the building.
Other tenants in the building include DRW Investments, recruitment company Red and the Financial Skills Partnership, but none commented on whether they would also be leaving the building.
The Chartered Institute of Loss Adjusters has confirmed that it will also be moving out early next year.
In June 2014, the ABI moved its investment affairs division to the Investment Association, and will shortly be dividing its Long Term Savings and Life Insurance Committee into two separate committees.
Peter Williams, former head of industry development at Aegon UK, said: “I think the ABI is changing for the new market. They need to evolve as the business evolves. There’s not the old life insurance industry as it was.
“By 2020, everybody’s charges will be reducing, and advisers, life offices, platforms and fund managers’ charges will be lower. This is good for consumers, but there’s less margin for firms and we’re not going to be paying for this type of thing. Life offices have got be leaner and fitter.”
Mr Evans also said the ABI would be working with the British Insurance Brokers’ Association to publish in December a new ABI and British Insurance Brokers Association code on vulnerable customers. The ABI is also working with Association of Professional Financial Advisers on simplifying the language around pensions.
Meanwhile Andy Briggs, chief executive of Aviva UK & Ireland, has become deputy chairman of the ABI.
At the biennial conference, the ABI published figures that showed £4.7bn has been withdrawn under the new pension freedoms since April. The figures showed that smaller pots are generally being taken as cash, while larger pots are still being used to access retirement income.
Adviser view
Jeremy Edwards, associate partner with Suffolk-based Martin Redman Partners, said: “There has been an awful lot of change over the last 20 years, and I suspect there will be a lot of change still to come.”
