Swinton to close 40 branches, over 260 jobs at risk
Swinton Insurance is to close up to 40 branches across the UK, putting 268 jobs at risk.
Swinton staff were notified of the branch closures this morning, with district manager and customer service roles most at risk, a spokesperson for the insurer told Post.
The move would leave Swinton with 59 high branches in the UK.
The decision comes as customers increasingly buy insurance online with less than 10% of Swinton’s customers using branches. This number continues to decline year-on- year, the spokesperson said.
“Our distribution model continues to evolve so that we meet the changing needs of our customers in an effective and efficient way. While these changes are always difficult for colleagues, especially those who are directly impacted by the proposals, they are vital if we are to remain competitive in a challenging insurance market,” a spokesperson for Swinton said.
“At the same time, we continue to invest in the business. This includes a £35m investment in the successful introduction of a new IT system to enhance our digital capabilities, and an increased marketing spend this year of £20m to improve our brand awareness.”
This latest round of branch closures follows a review last year by Swinton into whether to close 84 of its high street branches, including a contact centre in Norwich, placing 900 jobs at risk.
In September last year the group reported a pre-tax profit of £11.5m for the financial year ending 31st December 2016, down from £15.9m in the prior year.
The drop was due to the firm’s strategic changes to improve the business during 2016, including a £45m investment in IT upgrades, which saw a reshaping of its branch network and relocation of some of its teams.