Aon UK will slash more than 10% of its workforce over the next 24 months, mostly within...
Aon UK will slash more than 10% of its workforce over the next 24 months, mostly within its specialty division.
Dennis Mahoney, chairman and chief executive of Aon UK, told Insurance Times: “The specialty division was the most dependent on subscription-based payments and was therefore the part of the business most affected by Spitzer. It is sad to lose staff but the whole industry has had to adapt.”
Aon said it anticipated reducing its UK workforce by up to 750 out of a total 6,800.
Mahoney said it was no longer viable for brokers to undertake some of the back office functions they have traditionally carried out for underwriters, making many admin staff surplus to requirements.
He said: “We have moved to a different economic model where everything is done for the client. Spitzer questioned why the client had to pay for the processes of the market, and under this model they no longer do.”
The company informed employees today that it will enter into consultation on 27 October. It is expected that the job reductions will be achieved through a mix of natural attrition and redundancies.
Mahoney added: “Aon is an international company and yet we pay for our services in sterling. Leaving Spitzer aside, it makes sense to move some of our functionality to offices where it is cheaper.”
