UK insurance giant Norwich Union is to move hundreds more jobs to India in a move which will lead to compulsory redundancies in the UK, it was announced today.
Around 950 jobs will be created in India and Sri Lanka next year, leading to the loss of jobs in offices including Norwich and York.
Aviva, which owns Norwich Union, said that by the end of 2007 it will have offshored 7,000 jobs servicing its UK businesses.
Amicus attacked the announcement, which it warned underlined the threat to the future of the UK financial services industry.
Aviva said it expected no more than 150 compulsory redundancies next year as a result of today’s move.
“Offshoring is a well-established strategy for Aviva which provides flexibility and efficiency and enables the company to maintain the quality of service which customers demand,” the company said in a statement.
Around 760 of the new jobs will be based in India servicing the life and pensions and general insurance businesses in mainly back office administrative roles.
A further 190 finance support jobs will be created in Sri Lanka.
The company said it would do all it could to minimise compulsory redundancies by redeploying staff to alternative jobs.
Gary Withers, Norwich Union Life’s chief executive, said: “We operate in very competitive markets where customers continually seek better value for money and quality of service.
“The experience of our existing offshore operations shows that the service levels in India continue to match those that we achieve in our UK operations.
“Expanding our offshore operations will give us the increased capacity we need.
“We expect to conclude our offshoring plans by the end of 2007, by which time we anticipate that we will have up to 7,000 roles offshore servicing our existing UK businesses.
“We recognise that this is a period of great uncertainty and will do everything we can to support staff during this time and ensure that they are kept fully informed throughout the process.
“We have a successful track record of redeployment with moving, and as a result we will minimise the impact of redundancies."