Aviva to axe 13 UK branches and 80 broker-facing jobs

Aviva is to close 13 of its 30 regional offices in the next two years, putting 80 broker-facing jobs at risk.

The closures include Aberdeen, Plymouth and Oxford (see full list below).

To compensate, the insurer is expanding its onsite underwriting offering, called Broker Onsite Underwriting Solutions (Bonus), by 50 sites, and additional underwriters will be added to the 200 existing sites.

About 100 of the 180 staff from the closing offices will be redeployed as either onsite underwriters in new or existing broker sites or roving regional underwriters.

The change will leave Aviva with 17 UK offices: its six main regional hubs, nine regional branches and two national trading centres.

Aviva informed staff and brokers of the changes this morning.

Aviva said in a statement that it had expanded the Bonus offering in response to feedback from brokers.

Aviva interim intermediary and partnership director Phil Bayles (pictured) said: “We have always recognised the importance and value to brokers of local decision-making on more complex business. The expansion of Bonus, combined with what continues to be the largest regional office footprint in the UK, means we will deliver quicker, more responsive local decision-making than ever.”

The changes are part of the restructuring of Aviva’s regional commercial underwriting operation, which has been running for the past 18 months and is expected to continue for at least another year.

In June 2012, Aviva closed its offices in Northampton and Luton, which together employed 41 staff, and opened a new site in Cambridge.

Broker response

Some brokers have welcomed Aviva’s shift towards onsite underwriters. Oval chief executive Peter Blanc said: “Brokers are still really keen on the Aviva Bonus underwriters and my understanding is that Aviva will be looking to continue to support and grow Bonus.

“Making sure that Aviva’s Underwriters are close to us as brokers is the most important thing to us – where those underwriters park themselves when they’re not in our office is less relevant these days.”

“We get great support from Aviva and things have certainly been improving recently, so we hope that these changes will lead to an even closer working arrangement between underwriter and broker.”

However, some initial reactions were less favourable. One broker, who asked not to be named, said: “The move would seem to be motivated more by cost-cutting than providing a proper offering.

“I have seen examples where onsite underwriters work well, but it seems to be a way of forcing something onto brokers rather than something they have asked for.”