Broker Swinton is closing 40 branches, putting 268 jobs at risk
Swinton is closing 40 branches, putting 268 jobs at risk. This will leave the broker with 59 high street branches.
This is the latest in a slew of closures; Swinton closed 130 branches in 2016, followed by a further 95 closures in 2017. Before the latest cuts, Swinton had 99 branches.
Less than 10% of Swinton’s customers now use its branches, while 80% of people now buy their insurance online, according to the broker.
In its attempts to keep up with its customers, Swinton has recently undergone a restructuring. It saw a 28% drop in pre-tax profit from 2015 to 2016, partly owing to a £10.7m restructuring charge.
It is investing £35m in a new IT system, and will spend £20m on marketing as it targets digitally savvy consumers. In 2017, the broker debuted a £3.7m ad campaign.
A spokesperson for Swinton said: “Our distribution model continues to evolve so that we meet the changing needs of our customers in an effective and efficient way. While these changes are always difficult for colleagues, especially those who are directly impacted by the proposals, they are vital if we are to remain competitive in a challenging insurance market.
“At the same time, we continue to invest in the business. This includes a £35m investment in the successful introduction of a new IT system to enhance our digital capabilities, and an increased marketing spend this year of £20m to improve our brand awareness.”