AGCS confirms job cuts in 2017 and beyond

Company is reviewing its operations in some countries, including the US, while looking at automation and digitalisation

AGCS confirms job cuts in 2017 and beyond

Insurance News

By Louie Bacani

Allianz Global Corporate & Specialty (AGCS) has responded to reports that it will reduce its workforce by up to 10% under its Fit for Future project, a global productivity review program.

In an email to Insurance Business, AGCS confirmed that some jobs will be affected in 2017 and beyond as part of the company review, but a “great majority” of its employees will be unaffected.

According to AGCS, the primary locations under review are France, Germany, the UK and the US. Some of the options being examined include digitalization and automation for standardized processes, greater use of shared service centers to support routine activities, task transfer for non-complex work, and process redesign to speed up or simplify tasks.

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The Fit for Future project will be rolled out from the beginning of this year and will run into 2018, said the company, which has also started informing employees in the affected countries.

AGCS said it is too early to share specific details of the changes proposed under the review program since its outcomes have yet to be finalized amid ongoing consultations.

“Our industry is facing an era of unprecedented change which AGCS is proactively responding to. Reduced investment income, hyper competition for business, and excess capacity will be here for the foreseeable future,” the company said in a statement sent to Insurance Business.

“This is why, from a position of strength, AGCS is looking at how we can optimize our productivity, tap new growth opportunities and prepare our global business model for the years ahead with a sustainable strategy that also fits the evolving needs of our clients.”

“While the majority of AGCS’s global employees will not be directly affected, unfortunately some colleagues will,” the company added. “We are committed to minimizing the impact on them in a responsible manner wherever possible through voluntary leaver programs, early retirement or other measures.”

In 2016 and 2017, AGCS said that it is investing nearly €100 million into dedicated projects to further optimize its set-up and customer offering. These projects include capital optimization, client service improvements, innovation in new products and services, and systems investments.

Also this year, the insurer is planning to extend its global office network and develop new products and services to boost growth.

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