Major insurer culls 2000 jobs

Major insurer culls 2000 jobs | Insurance Business

Major insurer culls 2000 jobs

Global insurer Aviva is axing 2000 jobs across the UK, Europe and Asia over the next six months in a bid to achieve a cost-cutting target of $600million (£400m).

The cuts equate to just 6% of the company’s group headcount and has already achieved total savings of $412m [£275m] according to Money Marketing.

Aviva group chief executive Mark Wilson said: “I know this is difficult news for our employees but these changes are essential if we are to remain competitive.

“We must take tough decisions on costs to provide our customers with great-value products and ensure our future success.

“I am determined that Aviva gets through this phase of our business transformation as quickly as possible.”

In another questionable move by Aviva, the insurer has joined the race to buy the Co-operative’s general insurance arm for $974m (£650m), according to The Sunday Times.

 The Co-op put its insurance operations up for sale to fund the acquisition of 632 branches from Lloyds Banking Group but pulled out of the deal earlier this week.

 

Inflation to impact premiums more than inflation

Climate change will have a much smaller impact on insurance costs in Australia than inflation over the next 60 years, according to actuaries.

Weather-related insurance claims are currently $3.3billion a year, The Australian reported, with $1.9bn for home, $1bn for c0mmercial property and $400m for motor vehicle damage.

Hail and flood costs could increase by 50%; and bushfires by 100% by 2070 but the Actuaries Institute said inflation would have a greater impact on costs than climate change.

"This increase is relatively small when compared to the inflationary impact of 2.5% per annum over 60 years where, for example, $3.3bn per annum (in today's dollars) becomes $14.5bn by 2070," it said.

 

Disability fraudster caught “rocking out” to heavy metal music

Utah’s Attorney General’s Office uncovered 368 allegations of fraud last year with some suspects providing the most “damaging evidence” by posting videos on YouTube and Facebook.

A 40-year-old man had been collecting disability benefits for nearly 18 years because he said he was badly impaired by depression, anxiety, asthma, obesity and sore muscles that he was unable to leave his house.  His benefits ended after he posted videos showing him rocking out to heavy metal music, swinging on a swing set and riding a scooter.

In another a case, a 31-year-old woman had been getting benefits for four years because she said her mental disorders gave her low energy and it was too traumatic to be in public.  Her benefits were cut after investigators found newspaper articles about her being “constantly involved in music projects,” YouTube videos of her performances, Facebook posts about the venues she was playing and investigators witnessed her perform at a concert for several hundred people.

“We want to make sure that people who truly have disabilities get the benefits they need but we have zero tolerance for fraud,” said Wilbert Craig, special agent in charge, Denver Field Division, office of inspector general for Social Security Administration.