UK plans to withdraw from the direct home and auto insurance markets in the UK. This move could lead to 170 jobs being cut at the insurer’s Bristol and Guildford offices, and the company is now in discussion with the employees’ union.
The reorganisation will lead to the creation of a single trading division handling both personal and commercial lines. The new division will be operational on May 1, 2016 to be headed by Simon McGinn, the incumbent general manager of Allianz
's commercial business. Neil Clutterbuck will take on a newly created role as chief underwriting officer, while current retail general manager Neil Brettell will be leaving the company.
Chief executive Jon Dye stated that having a single trading division will ensure a coordinated business strategy and best practices, leading to more profitable growth across all products and channels.
has reassured the public that there will be no effect on motor and home policies sold through brokers or through partnerships with automakers. All other aspects and operations of the company will also be unaffected.
According to Dye, "Withdrawing from the direct home and motor markets is a difficult decision because of its potential implications for our people and we will work individually with them to try and find alternative roles within the business.
"Despite significant investment in our direct business, the price sensitive and highly competitive market conditions mean we have not been able to achieve the scale of operation necessary.
"This situation is unlikely to change within a timescale we find acceptable so after careful consideration, withdrawing from this market is the best way forward for the business."