The head of Hiscox' private client division has been made redundant following a "review" of the insurer's mid net worth (MNW) and high net worth (HNW) businesses.
The head of Hiscox' private client division has been made redundant following a "review" of the insurer's mid net worth (MNW) and high net worth (HNW)
Guy Knight and one other person were made redundant last week after a restructuring ordered by Hiscox chief executive Bronek Masojada.
Market sources have suggested that Knight's departure may have resulted from "systems and process problems" with the HNW/MNW products. Hiscox denied this.
Knight was spearheading Hiscox' drive into the MNW sector and the development of an internet sales portal. Critics have argued that the MNW market was a dangerous one to enter owing to the high cost of doing business. The use of the internet to sell MNW and HNW has also been criticised.
Oak Underwriting managing director Tony Lumsden-Cook said: "I have never understood why people use the internet to sell HNW policies. There is no logic. And technology won't solve the cost issues surrounding MNW."
A spokeswoman for Hiscox denied there were any problems with the HNW and MNW businesses. "Knight's product development team has merged with the product team. The move is to structure the business around underwriting and our regional offices."