About 30 jobs related to claims handling are in danger at major car insurer
Direct Line Group amid impending government reforms in the personal injury claims environment.
Insurance Business has learnt that Direct Line Group is consulting its employees on proposed structure changes to the way that the insurer is handling bodily injury claims.
The source suggested, however, that the move is not linked to the recent discount rate change and is part of “ongoing work improving the efficiency and effectiveness within the company’s claims function.”
“Like any prudent business we are constantly looking for ways to be more effective and improve efficiency,” the source said.
The source added that Direct Line Group is looking to redeploy employees to minimise redundancies.
Direct Line Group previously said that moving the personal injury discount rate to -0.75% would reduce profit before tax by between £215 million and £230 million. It would also increase the combined operating ratio for ongoing business by about six percentage points.
“The Group is committed to ensuring claimants receive appropriate compensation,” the company said. “The Group is disappointed at the Lord Chancellor’s decision, but will take the time to review the full statement of reasons given. The Group welcomes the consultation to consider options for reform to achieve a better and fairer framework for claimants and defendants.”
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