Major high-street broker Swinton
Insurance is planning to shut down 84 more branches and slash 900 roles as it continues to revamp the business to keep up with changing customer preferences in buying insurance.
Swinton has started reviewing its branches and intends to cut its workforce by the end of the year. The brokerage is also assessing its call centre in Norwich that employs 183 people. Consultation with all affected workers is expected to begin soon.
“The review is likely to result in a reduction of around 900 roles by the end of the year,” Reuters quoted the company as saying.
“Where possible, affected staff will be deployed into other parts of the business.”
The shift in consumer behaviour prompted Swinton to restructure its operations. The broker said 90% of its customers now buy insurance over the phone or online instead of going to its branches, the Financial Times reported.
“Our approach today, which is based on a high contact strategy, no longer meets our customers’ needs,” Swinton chief executive Gilles Normand was quoted as saying in the report.
“While branches continue to be an important part of our multi-channel business model, we need to ensure that we can interact with customers whenever, and however, they choose,” he added.
According to the report, Swinton is making a £45 million investment in technology at its new headquarters and call centre in Manchester.