Norwich Union's roadshow is telling us all will be fine. But Elliot Lane asks, when?
Last month, Insurance Times exposed the fundamental dissatisfaction among Norwich Union (NU) employees. Morale was at an all-time low. Then last week, the insurer announced it intended to close 11 claims centres and dispense with 750 people.
Theoretically only 325 `net' jobs will go because NU is looking to recruit 425 new staff. But what does it say about its claim to improve service? According to NU's senior executives the one clear message that brokers expressed during Ken Wallace's nationwide roadshows is that when they have a query, they want someone at the end of the line who knows what they are talking about.
This restructuring will mean that "specific skilled" claims staff will now be at the end of the phone line, and the overall strategy behind closing these smaller, so-called deadwood offices is to consolidate and streamline the claims process.
E-broking, where brokers can log on to a website and access information on their NU personal lines clients, is another addition to make the broker's life less stressful. But there are a few teething problems.
Around £11m, says NU, will be made in a one-off cost plus a £12.7m saving annually for NU Insurance.
Tub-thumping indeed. However, our sources contradict the official picture of improving customer service in the claims department. They say the number of executive complaints - that's the last stop before a complaint goes to the insurance ombudsman - has almost doubled and is currently running at 1,500 a month. Staff numbers have increased accordingly to handle the extra work, they say.
The company denies this. Claims director Simon Machell declined to comment on the exact number of executive complaints. He said the number of executive complaints had been "largely static over the last year or so". He insisted that general customer service was improving.
But Insurance Times continues to be contacted by NU staff who are deeply concerned about morale, customer service and the company's behaviour.
NU's argument skates on thin ice, and the timing of the announcement was strange, if not disingenuous. A clear message to NU's senior management - now is the time to deliver on the promises to both broker and customer.
