Allianz UK is planning to withdraw from direct home and motor and as a result, is putting 170 jobs at risk.
Roles in Allianz’s Bristol and Guildford offices will be affected by the proposal and a period of consultation has begun with the Union on the future of the roles.
Following a strategic review, Allianz UK said it is changing its structure and creating a new single trading division combining commercial and personal lines business.
The new commercial and personal division will be operational on 1 May 2016 and will be led by Simon McGinn who is currently general manager of Allianz’s commercial business.
As a result, retail general manager Neil Brettell is leaving the business.
Neil Clutterbuck has been appointed as the new chief underwriting officer reporting directly to the Chief Executive and will join the Allianz UK management board.
Clutterbuck will lead a new technical division responsible for underwriting and pricing activities across all business lines and the further development of state-of-the-art underwriting and pricing capabilities.
If the proposal to withdraw from the direct market goes ahead, Allianz’s direct motor and home books will be placed into run-off with no new business accepted after 30 June and no renewals invited after 31 July.
The insurer said the changes would have no effect on Allianz’s home motor and policies sold through brokers or on the company’s partnerships with motor manufacturers.
All other aspects of the business are unaffected.
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.
“We are taking a long term view on how we can meet the challenges that face us in the future and I believe these changes will make us an even stronger business. We are focussed on delivering excellent results for our customers, brokers, corporate partners and our shareholder and on delivering the consistently profitable results for which Allianz UK is recognised.
”A single trading division will help us ensure we have a co-ordinated business strategy that delivers profitable growth across all products and channels.”