Up to 1000 UK jobs coul be at risk at Norwich Union following Aviva's announcement that it is to open a 1000-seat general insurance claims processing unit in India.
Up to 1000 UK jobs could be at risk at Norwich Union following Aviva's announcement that it is to open a 1000-seat general insurance claims processing unit in India.
Norwich Union's general insurance chief executive Patrick Snowball told Bloomberg he expects normal staff turnover in the UK, "to minimise any compulsory redundancies". However he added: "We can't rule out that there will be some pain felt in the UK."
The pressure for job cuts could be fuelled by claims that the new Indian operation will be 40% less expensive than a similar centre in the UK.
According to Aviva the move will give the group's business extra capacity.
The operation will employ up to 1,000 people by the end of 2003. By taking advantage of the time difference, the company hopes to extend its capacity for round-the-clock claims processing.
Aviva group chief executive Richard Harvey said: "Aviva is a global company, employing 64,000 people around the world.
"We are operating in an increasingly competitive environment and need to explore opportunities to improve our efficiency, while delivering high levels of service to our customers. Developing administrative capability in India is part of this process."
