Life Assurers Announce Combined 1,330 Job Cuts Amid Industry Shake-Up

Strategic Insights -

Fierce economic pressures are forcing life assurers to rethink their business models, resulting in significant job losses. Aviva, the UK's largest life assurer, and Royal London, the second-largest mutual life assurer, have announced combined job cuts of 1,330, with Aviva cutting 700 jobs and reducing contract positions by 250, and Royal London losing 380 jobs due to the closure of its face-to-face direct sales force.

Key Takeaways:

  • Aviva will cut 700 jobs and reduce contract positions by 250, while Royal London will lose 380 jobs due to the closure of its face-to-face direct sales force.
  • The job losses at Aviva will be spread throughout the UK, with 250 in Norwich, 150 in York, 150 in Bristol, 100 in Stevenage, and 50 in Croydon.
  • Aviva has sparked controversy by transferring 2,500 back office jobs to India as part of an "offshoring" arrangement.
  • Royal London's decision to close its face-to-face sales force is attributed to the economics of providing direct advice not adding up any longer.
  • Norwich Union Life's chief executive, Gary Withers, stated that the industry is undergoing fundamental change, with a need for a more flexible model.
  • The company is exploring third-party partners and plans to outsource half of its business services operation, keeping the rest in-house.

Statistics:

  • 1,330 total job losses announced by Aviva and Royal London.
  • 700 jobs cut by Aviva.
  • 250 contract positions reduced by Aviva.
  • 380 jobs lost by Royal London.
  • 2,500 back office jobs transferred by Aviva to India.
  • 50% of Norwich Union Life's business services operation planned to be outsourced.
  • Afghanistan, York, Bristol, Stevenage, and Croydon locations announced for job losses.

Sources:

  • "Aviva and Royal London announce combined 1,330 job losses" by ANDREW BOLGER and ROBERT ORR, as published in the Daily Mail, 25 February 2023 [1]
  • "Aviva to axe 700 jobs as part of radical overhaul" [2]
  • "Royal London to close face-to-face direct sales force" [3]