INSURANCE COMPANY Aviva is planning to close its entire network of 26 branches by next summer, as part of its strategy to reduce its operations in Ireland.
The company announced last month that 950 staff were to be let go and a further 300 faced possible outsourcing. The company did not give precise details of where the cuts would be made.
However, an internal document setting out proposals for the board of the company in Ireland and the UK suggests its future strategy involves moving the company’s business to a combination of online delivery and sales through brokers.
Aviva in Ireland would, under the proposal, operate as a branch of the UK operation.
Under the proposals, human resource, information technology and finance functions would all be serviced from the UK “hub”.
All existing Irish business would gradually be transferred to branches in the UK over a year as policies came up for renewal.
UK products would be adapted for sale in the Irish market, with limited deviation from UK standards.
The proposals state that 120 jobs would go following the closure of the 26-outlet branch network, which would take place by the end of June 2012.
An estimated 70 per cent of that business would move to brokers.
The proposals would see 126 jobs going in direct sales and service as the company moved to web self-service.
The claims section of the company would lose 107 jobs, while the team of business development managers would fall from 55 to 26. The commercial underwriting section would lose 39 jobs and finance would lose 20.
The Irish executive management team would be cut from seven to one.
Aviva announced yesterday that the chief executive of its Irish operations Dermot Brown is to be replaced by Seán Egan at the end of the year.
Mr Browne has been chief executive since February this year. Mr Egan will be the fourth executive in the role in the space of just over two years.
He previously held the role of chief operating officer of Aviva’s UK general insurance business and is also a member of Aviva’s European executive committee.
Brian Gallagher, regional officer with trade union Unite, said: “Seán Egan has been parachuted in to force through a merger of the Irish business into that of the UK.”
By June 2013, the independent Irish operation of Aviva will be closed, although over 1,000 jobs will remain in Ireland.
In a statement last night, Aviva said: “Aviva announced proposals on October 19th, 2011, to combine Aviva Ireland with Aviva UK to form a new UK and Ireland region with the ambition to become the most competitive insurance provider in Ireland.
“Work continues on the feasibility of our options and no decisions have been made. We are committed to a consultation process and sharing the outcome of our discussions with our employees first.”
Unite said it would seek a meeting with the new chief executive of Aviva Ireland today to demand clarity on whether the new proposals represented a basis for negotiation.
