Loss of £10m Norwich Union account triggers major redundancies

Capita Insurance Services has told its volume loss adjusters they face redundancy, following the loss of the Norwich Union (NU) property and commercial accounts.

Market sources reported that 70 Capita staff were told their jobs were to go. The company is to close its Nottingham unit .

Cunningham Lindsey and Crawford were named as the two winning tenders for the account, estimated at £10m.

A Capita spokeswoman said: "We have entered a period of consultation with a specific section of our field force to explore our future resourcing requirements following Norwich Union's decision not to renew its loss adjusting contract with Capita.

"We are exploring ways in which we can minimise the loss of jobs and will focus strongly on offering alternative employment both across the business and in the wider Capita Group."

Two other loss adjusters, Claims People Group and Ashworth Mairs, were also removed from the NU panel, losing their biggest accounts.

The loss leaves Capita with just one account, Zurich, estimated to be worth £8m, from 12 deals it inherited with the purchase of McClarens.

The Zurich business is also out to tender, with Capita tipped not to compete for it.

A market source said: "It seems difficult to see how Capita can keep going with just the Zurich account left. You can't really see how Capita can call loss adjusting core anymore."

NU reported it would continue to work with Capita in some areas of major loss and legal expenses.