Zurich’s plans to axe 240 jobs in an overhaul of its UK business should have no impact on financial advisers, according to one of the company’s senior figures.
The protection firm announced a restructuring of its business in January, bringing together its life and general insurance businesses under a single leadership team.
Peter Hamilton, head of retail operations at Zurich, told FTAdviser that financial advisers should not be affected by the reforms.
“Whenever you go through a restructure there is an impact, but we want to ensure the advisers don’t see a difference,” he explained.
“The heart of it is simplifying the business we have got. None of the redundancies are in adviser-facing roles.”
Employees are currently being consulted on the redundancy plans, which are part of a drive to ensure the UK operations reflect the way Zurich is structured globally.
Mr Hamilton also said he expects to see more work on the Seven Families project during the coming year.
The initiative was launched in 2014 to highlight the financial impact of long-term illness or disability by providing a tax-free income for one year to seven people who lost their income because they could no longer work.
“I think there is enough momentum behind it,” he commented. “Things like Seven Families reinforce the importance of protection.”
The project is part of a wider initiative to improve the public image of the protection industry, which, Mr Hamilton admitted, is still viewed negatively by many members of the public.
“Sometimes I think we are our own worst enemy,” he continued. “In terms of claims, the message is getting better, but people do not make a distinction between different types of insurance.
“There are journalists in the national press who publish positive claims, although many of the nationals still think bad news sells.”
Another challenge faced by the industry is the disruptive influence of fintech, which Mr Hamilton views in a broadly positive light.
He commented: “Fintech is seen as an existential challenge to life insurers and financial services, but from our perspective some of the companies should be seen as a potential partner, not a threat.
“What they are not doing is creating business to rival ours but business to complement ours. Overall, my sense is that people will still look towards the big brands, and these companies will be able to help brands better deliver to customers.”
But he also warned that the rise of DNA profiling technology risks dividing the population into two separate groups of people based on their health.
“The rate at which it is going is quite significant,” he said. “If we get to a stage where your medical future is very clearly mapped out, it starts to question the fundamental basis of insurance.
“If you get down to very individual predicting, the challenge is that insurance becomes unavailable to some and unnecessary for others.
“We need to ensure it does not become the preserve of the healthy. As people lead healthier lifestyles we will see more prevention rather than pay outs, and that is a positive step.”
simon.allin@ft.com
