Global insurer Zurich has announced its strategic priorities for its UK Life business, together with proposals for subsequent organisational changes.
The insurer has reviewed its areas of strategic focus in light of challenging and changing market conditions and unprecedented regulatory change as it builds on its success in delivering a competitive and sustainable business.

Key priorities are to:-
·        Maintain focus on the advisory and intermediated market to reflect the increasing need for quality advice for individuals, corporates and trustees
·        Continue the strong growth it has achieved in the retail protection and corporate risk markets
·        Continue to grow Zurich's position in the UK corporate savings market, in particular through its Corporate Savings Platform – ZurichMoney4Life - launched earlier in the year
·        Grow market share in the retail wealth market after the introduction of the Retail Distribution Review (RDR) changes, through its newly-launched open-architecture Intermediary platform
·        Separately manage the in-force business to deliver to existing customer needs after the RDR changes

As the UK Life business is realigned to become more efficient and agile in competing in these markets, a reduction in role numbers is proposed.

Subject to consultation, around 200 jobs will be removed from functions and management layers across the business – which currently employs 1400 people - including sales and marketing, senior management, finance, risk, compliance and operations.



Gary Shaughnessy, chief executive for UK Life, said that the continuing transfer of financial responsibility from the state and corporates onto the individual, the savings and protection gap in the UK, and all the forthcoming fundamental regulatory change, made it essential that the business evolved to meet the changing demands of intermediaries and customers.

He said: " As our recent results demonstrate, our business is well positioned despite the challenging markets we're operating in. For example, we've recently made significant investments into our corporate and retail platforms to meet the changing needs of our customers and partners.

"We're a strong company with a proven track record, but in order to maintain and build on our success we must ensure that we operate with a sustainable and focussed cost base. With the market backdrop and imminent regulatory and market changes, we have a responsibility to take steps now so that we can continue to deliver and invest for our partners and customers in the future.

"That can mean having to make some difficult decisions about the way we run the business and where we focus. These steps are not taken lightly and we will do all we can to help our people at this difficult time."

Some of the sales roles affected by the proposed changes are within the business's branch offices, which are proposed to be streamlined and reduced from nine to five by the end of October. Zurich has notified the people whose jobs may be affected that their roles are at risk of redundancy. The majority of those affected will now enter into a 90 day consultation process, whilst branch-based employees will enter into a 30 day consultation.