Direct Line to cut 236 more jobs in business shakeup

Direct Line Group has announced that 236 jobs are at risk, including 90 at NIG, as the company unveiled further details of its drive to cut £100m in costs by the end of 2014.

The affected jobs are in Direct Line’s commercial, chief customer office and risk and compliance arms.

Direct Line will restructure the regional underwriting side of its commercial arm by making two new underwriting bases next year in the north and south of England.

NIG managing director Jon Greenwood said: “This will help to streamline our administration and underwriting assistance across the UK. In addition, we are proposing the creation of trading branches focused on new business and key renewal negotiation at each of the existing eight regional offices that are in-scope of this proposal.

“While we don’t take such decisions lightly, the commercial landscape has become more challenging and, like other commercial insurers we need to respond to this to stay competitive and to ensure the best deal for customers and the right support for our broker partners.”

In risk and compliance, Direct Line wants to streamline the business but improve its compliance ability.

Direct Line will shake up its chief customer office by merging its telephone trading and business service arms.

The group hopes to create more jobs by rejigging the firm, and also wants to redeploy staff affected by the current consultations.

Direct Line Group chief executive Paul Geddes said: “These proposals are another important step on our journey to deliver on our cost saving target. They are essential to ensure we are as efficient and competitive as possible. As always, I have not made these proposed changes lightly and understand the impact they will have on our people, and we will do all we can to support those affected.”