Zurich Financial Services decided to restructure its underwriting operations because the present system does not serve brokers as well as it could, CEO Daniel Fogarty says.

“Zurich has a broker-only distribution process, so it has to work for brokers,” he told insuranceNEWS.com.au today. “We are aiming for greater consistency in delivery by freeing up underwriters in the states to get out and talk to brokers.

“That’s what they tell us they want.”

As exclusively reported by insuranceNEWS.com.au last week, about 45 positions in Zurich’s Sydney head office and state offices are expected to be lost in the restructure, under which state-focused commercial service delivery teams will be formed at the Zurich Underwriting Centre (ZUC) in Sydney.

However, another 35-40 roles will be created in the Sydney operation, as process capabilities move from the states.

“We need consistency in decision-making, so we will free up the state-based underwriters so they don’t have to do all the process work, and beef up the ZUC to support them,” Mr Fogarty said.

“But that doesn’t mean the state offices will be decimated. They are a vital part of our operations.”

Zurich says implementation will take place over the next six months, with the ZUC becoming “significantly larger and based on a geographic state split rather than line of business”.

“It will work as an extension of our state-based teams,” a spokesman said. “Our investment in the centre will increase service levels, ensure consistency and broaden appetite.”

Mr Fogarty told insuranceNEWS.com.au he “greatly regrets” the loss of Head of Commercial Distribution Anthony Pagano and Head of Customer and Product Proposition Nick Cook, who decided to accept redundancies when their positions were opened up for applications.

The two managers, who have a combined service at Zurich of about 46 years, will leave the company next month.

“Anthony and Nick have made a significant contribution to Zurich over many years,” Mr Fogarty said. “We didn’t expect to lose them, and I genuinely wish them well for the future.”

Mr Fogarty says Zurich has “great people who have worked hard for us and for brokers – people with great relationships and who we count as friends. In the short term there is pain for some people [affected by the restructure] and we absolutely recognise that.” 

Staff affected by the changes will have the opportunity to apply for redeployment and relocation.