Posted in: Insurance
Insurance Times
Analysts warn of job cuts over credit crunch
Issue 08-11-2007
By Tom Flack, James Dean
Hundreds of broker jobs threatened as
weak dollar and credit crunch squeeze sector
Analysts have warned that UK-based employees of
major international brokers are at
the greatest risk of losing
their jobs, as the credit crunch and
weak dollar take their toll.
The news follows Aon's confirmation that
2,700 jobs will be
lost as part of its three-year global
restructuring programme -
1,300 more than it originally
estimated - with cuts to hit the UK.
Analysts said brokers with high
dollar revenues faced the
biggest threat of UK job losses,
as the relative high value
of the pound meant staffing was
more expensive in the UK.
The slowdown in the UK economy
and the global credit
crunch were also given as reasons for
cuts being likely.
Charles Coyne, analyst at KBC Peel Hunt, said:
"If revenues are in dollars, but expenses
are in sterling - or euros - then
expenses in areas where currencies are
stronger become more of an issue."
Brokers are in a difficult position. Primary insurers may
be retaining more risk as prices drop, so there's less to
pass around to brokers," he added.
Mark Adams, insurance partner at Deloitte, said that
job losses at global brokers were a natural
fall-out from the
Spitzer reforms, but it was difficult to
predict losses in the UK.
He said: "The stresses affecting the
larger players are
very different from those impacting
on the smaller ones."
However, research by Plimsoll
Publishing suggests that
5,000 UK broker employees could
lose their jobs, as
a result of the slowdown in the
economy and the credit crunch.
David Pattison, senior
analyst at Plimsoll, said:
"We can expect significant
players making significant job cuts.
"When announcing its global
restructuring plans in
October 2005, Aon estimated a
loss of 1,400 jobs worldwide
by the end of 2007, with 750
going in the UK.
But, this figure had risen to 1,800
jobs globally by March 2006.
Gretchen Roetzer and Gregory
Dickerson, analysts at
Fitch Ratings, said: "We would
not be surprised if the recently
announced programme was focused
more on the company's
European businesses, although further
job cuts in the US and UK remain possible."
However, they did not believe that Aon's cuts were
made because of potential subprime losses."
Fitch views Aon's exposure, if any, to sub-prime losses
as modest, and does not believe that these actions
are related to investment impairments", they said.
They added that it was "not clear" whether Aon's
biggest rivals, Marsh and Willis, would cut jobs.
A spokesperson for Willis said:
"We are always reviewing
our business model, but currently have no need to
restructure or have significant job cuts."
Marsh declined to comment.
Posted in: Insurance
Year 2007 is almost at it's end. I'm not so sure what 2008 would be bringing along. So there are two ways to look at it.
Either it's the coming of an end, or a dawn of a new beginning. Depends really on how you look at things.
It has me thinking though… There's a lot of uncertainties in this world! Have I done everything I can to make sure that I'm buffered on whatever life might bring?
This is the reason why suddenly I'm thinking of insurance right now. It is a part of what I do, but now I'm looking at it in a more personal perspective. There's a lot of them available in the market now. Be it car insurance or home insurance take your pick.
For example, if I want to buy a car where should I get the insurance and what kind should I be getting? See, you should compare car insurance no matter what. Because there will be a lot of choices and your decision should be based on your lifestyle and income flow.
For some, it sounds very boring. Sometimes I think so too. But these are things that should not be overlooked. Otherwise, you'll regret it. haha! Seriously, it would mean a lot of trouble in the future if you don't start out in the right foot. So to speak.
Posted in: Insurance
Quoted from a well-known ex-CEO of an insurance company's blog,
"Yes, but being a co-operative can also mean that they answer to nobody, just like what I am experiencing now. Phone call to CEO cannot get him, leave message to make contact, no response. Email to him, no response. Talk to agent, say management told her not to respond to me.
————————REPLY:
I suggest that you raise your issue with the service quality manager. If you still do not get a reply, you can write a complaint to FIDReC.
The CEO of a co-operative has to answer to its board of directors and to its members at its annual meeting. This is similar to a private company.
If you write to the CEO of many large companies, you will not get a reply from them as well. They are busy people. They will normally get a subordinate to reply to you."
Let's take a look at the comments:
1. "Many people think they must go all the way to the top to get things done.
We have to be fair to the time of the CEO, he has better things to manage.
Most of the problem is give and take, and usually lots of goddwill already being considered.
Many do not accept apology and not willing to shoulder part of the blame as well.
Service is not one way, but two ways.
Most people expect service to be one way.
Customer is always right, but this does not happen today.
Morale of employee is also important today that customer who is partly at fault should also share the blame."
2. "You can seek redress through CASE or private legal recourse if you still are unable to get your problem resolved at this level."
3. "Perhaps I should point out that the issue I wanted to raise requires the attention of management. In fact, talking about service, this agent of mine, when I first met her, I even bought her lunch. The only service I did not provide to her is that of recommending people to her although she has asked many times. I think one has to demonstrate one's capability before others can recommend. In my case, I do not "blame" the more than 10 people I have spoken to, mostly frontline staff, whom I believe are trying to do their job, but certain issues need the agreement of senior management, that is why I wanted them to be involved. How can a service quality manager decide on issues that are not service related?
That is the problem with CEOs who think that they are busy people. I think with the effort I put in, I would have gotten the attention of no lesser CEOs like Bill Gates and Michael Dell!
Anyway, we are not in this world to play the blame game, and I am certainly not in this world to service any NTUC Income. The only mistake I have made is to spend around a thousand dollars every month contributing to Income to receive this kind of treatment. I must say it is a first and beats all other incidents of poor service. I got even better service spending much less from much smaller companies.
Perhaps it is because NTUC Income knows that when people buy policies, it is to their disadvantage if they gave it up, so either way, they have nothing to lose. I can put up with deficiencies of knowledge, and even help those who are deficient in their knowledge, but I will not tolerate deficiencies of execution, knowing but not doing, so that is the reason why I expect the CEO of Income to respond.
Anyway Mr. Tan Kin Lian, the former CEO of Income has ever responded to me very promptly when I have cause to write to him several years ago. I am sure he is also a busy man."
& here is my comment:
"Perhaps Mr Tan Kin Lian is much more proactive in handling feedbacks and complaints.
After all, he had taught me the following: -
1. Do Learn & Adapt
2. 1 4 14 Rules
when I was working in NTUC Income's claims dept.Now, having work in so many insurance companies before, I regret to advise that I have not found a CEO who is much prompter as compared to Mr Tan Kin Lian."
I am just speaking the truth. After all, most CEOs in the insurance industry are commercial men, who cares about feedbacks and complaints? Profits are much more important.
Posted in: Insurance
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