Allianz set to withdraw from UK motor market
Allianz UK wants to withdraw from the direct motor and home business in the UK, saying it hasn’t achieved ‘the scale of operation necessary’.
It has now entered a period of consultation with 170 staff across its Bristol and Guildford offices, and is also in discussions with union Unite.
If the withdrawal does go ahead, it won’t accept any new direct home or motor insurance after 30 June and won’t invite renewals after 31 July. Allianz has stressed though, that there will be no effect on home motor and policies sold through brokers or on the company’s partnerships with motor manufacturers.
Speaking to Insurance Age, chief executive Jon Dye said, ‘Withdrawing from the direct home and motor markets is a difficult decision because of its potential implications for our people and we will work individually with them to try and find alternative roles within the business.
‘Despite significant investment in our direct business, the price sensitive and highly competitive market conditions mean we have not been able to achieve the scale of operation necessary.
‘This situation is unlikely to change within a timescale we find acceptable so after careful consideration, withdrawing from this market is the best way forward for the business.’
Instead, the company will create a new trading division combining commercial and personal lines. This will be led by Simon McGinn, who is currently general manager of Allianz’s commercial business, while current retail general manager Neil Brettell will leave the company.
Jon said, ‘A single trading division will help us ensure we have a co-ordinated business strategy that delivers profitable growth across all products and channels.
‘It will drive best practice and achieve economies of scale in areas including marketing and distribution and brings us more closely in line with the structure that has underpinned the success of the Allianz Group.
‘It also sets us up well to develop synergies between broker and corporate partner customers where business models are constantly changing.’