ProtectionOct 13 2015

Zurich insists job cuts will not hit adviser support

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Zurich insists job cuts will not hit adviser support

Zurich is proposing, subject to consultation, to axe 29 jobs in its retail sales team.

The provider confirmed it is looking to restructure the support and administrative teams, as well as streamlining some of the management functions, in order to realign resources and focus on protection and wealth.

According to bosses, the proposed changes will help Zurich deliver increased efficiency and co-ordination of service to advisers and their clients.

They added that the firm remains committed to having one of the largest sales teams in the industry and the proposed changes, should they go ahead, do not impact face-to-face teams that are directly responsible for managing the relationships with advisers.

A period of consultation has now been entered into with the affected individuals and relevant employee consultation bodies.

A spokesperson for Zurich UK Life said: “Making these decisions is never done lightly or easily and we appreciate this is a very difficult time for those affected by the proposals.”

The job cuts come after last month Zurich Insurance Group’s anticipated £5.6bn takeover of RSA Insurance Group fell through as a result of recent deterioration in the trading performance of Zurich’s general insurance business.

A stock exchange statement on 21 September revealed expectation of weaker than expected profitability in the general insurance division during the first half of 2015, which it set to continue in the third quarter.

emma.hughes@ft.com