Internal memo from executive chairman Alastair Lyons reveals decentralised structure
Towergate is to disband its current executive committee as part of a major management overhaul, which has seen chief executive Mark Hodges leave the business.
The details are revealed in an internal staff memo seen by Insurance Times.
Under the new structure, Towergate will set up steering committees made up of executive and non-executive members for each of its four main business units – broking, underwriting, Paymentshield and direct.
The chief executives of these divisions will report into these steering committees and be responsible for the design and delivery of the divisions’ business plans.
Executive chairman Alastair Lyons, who will run Towergate in the interim, said in the memo: “We are redesigning the management structure to recognise that while there is much that is complementary across Towergate, our principal businesses serve different markets and have different priorities, especially in a time of much change.”
The group executive committee will “cease to exist in its current form as the body that directs the group’s activities” he said.
It will be replaced by monthly meetings between the different leaders from parts of the business to make sure all the leaders know what is going on in the business and to make the most of group synergies, Lyons added.
The new structure will see Towergate Insurance Brokers chief executive Michael Rea taking on the role of chief operating officer, working alongside Lyons.
He will be responsible for the group’s non-finance shared functions and will also oversee Towergate Financial and Broker Network.
Broking chief executive Mike Lawton will oversee both the broking strategic business unit and the advisory elements of the broking business.
In his message, Lyons also thanked departing chief executive Hodges for his contribution during his three years at the helm.
He said: “Under his leadership the business has been substantially reshaped with major change programmes underway to simplify, standardise and modernise the way we do things.
“Having led the design and early implementation of these programmes, Mark feels that now is the appropriate time for a new leader to take over and embed this change in the business.
“The board is grateful to him for his significant contribution having transitioned Towergate into a new ownership structure.”