Aviva to shut Irish branches

Insurance company Aviva is planning to close down its entire network of 26 branches by next summer, as part of its strategy to…

Insurance company Aviva is planning to close down its entire network of 26 branches by next summer, as part of its strategy to slim down its operations in Ireland.

The company announced last month that 950 staff were to be let go and a further 300 faced possible out-sourcing. 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 that 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.

Under the proposals, human resource, information technology and finance functions would all be services from the UK "hub".

All existing Irish business would gradually be transferred to branches in the UK over a year as it came up for renewal.

At the same time 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.

By June 2013, the independent Irish operation of Aviva would be closed although over 1000 jobs will remain in Ireland.

In a statement tonight Aviva said: "Aviva announced proposals on 19 October 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."

The trade union Unite said it would seek a meeting with the new chief executive of Aviva Ireland tomorrow to demand clarity on whether the new proposal represented the basis for negotiation.

Unite regional officer Brian Gallagher said that management had previously stated that it would be January before details were finalised "but this suggests otherwise."