Aviva says that its UK insurance business Norwich Union plans to cut costs by outsourcing 1,000 jobs to India. A further 500 jobs will be outsourced to third party IT suppliers.
The savings and costs will be evenly spread between the life and general Insurance businesses and in the life business, and the company expects the benefits to accrue principally to shareholders.
The company says it will seek to minimise the number of compulsory redundancies through natural staff turnover and voluntary measures. The savings will be made in marketing, human resources, finance, and information technology, as well procurement and supplier management.
“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,” says Patrick Snowball, the Norwich Union executive chairman. “Already half our new direct motor insurance policies are purchased over the internet. Consumers, IFAs and brokers are increasingly operating in a self-service world. The integration and efficiency measures we are announcing today are part of a programme which will result in an increase in customer focus across our UK businesses along with better and more efficient use of technology.”