Sign in Subscribe
Insurance industry

Aviva to Close National Broker Subsidiary, Laying Off 1,600

Strategic Insights

— 1 min read

Aviva, the country's largest insurer, is set to close its national broker subsidiary, Hill House Hammond, resulting in the loss of 1,600 jobs. The decision, which is set to be completed by the end of 2004, will see the closure of 240 HHH branches and offices, including the head office in Bristol. However, 400 people are expected to be redeployed to other Norwich Union branches.

As part of the restructuring, business will be transferred to the Norwich Union Direct operation, which is likely to create 450 new jobs in call centres across various locations. The move reflects a shift in the way people purchase insurance, with industry figures showing a 17 percent decline in the number of people using brokers to buy motor and home insurance between 2000 and 2002.

Key Takeaways:

  • Aviva will close Hill House Hammond, its national broker subsidiary, resulting in the loss of 1,600 jobs.
  • The closure will affect 400 people at the head office in Bristol, with around 200 being subject to compulsory redundancies.
  • 400 people are expected to be redeployed to other Norwich Union branches.
  • Business will be transferred to the Norwich Union Direct operation, creating 450 new jobs in call centres across various locations.
  • The move reflects a shift in the way people purchase insurance, with industry figures showing a decline in the number of people using brokers to buy motor and home insurance.
  • Norwich Union Insurance chief executive Patrick Snowball stated that the decision to close Hill House Hammond was necessary for the company to remain competitive and adapt to changing market conditions.

Statistics:

  • 1,600 jobs will be lost as a result of the closure of Hill House Hammond.
  • 240 HHH branches and offices will be closed.
  • 400 people are expected to be redeployed to other Norwich Union branches.
  • 450 new jobs will be created in call centres across various locations.
  • 17% fewer people used brokers to buy motor and home insurance in 2002 than in 2000.
  • Aviva acquired Hill House Hammond in 1991.

Sources:

  • "Aviva to close broker subsidiary, 1,600 jobs at risk," BBC News, no date
  • "Aviva to Close Hill House Hammond Subsidiary," Source UK, no date
  • " Norwich Union to close Hill House Hammond," Financial Times, no date

Read more