The Association of British Insurers (ABI) has combined the leadership of its general insurance and life departments and terminated 16 staff, including three high-profile executives.

As part of the restructure Director of General Insurance Nick Starling, Director of Life, Savings and Protection Steve Gay and Director of Financial Conduct Regulation Maggie Craig have left the organisation.

Huw Evans has been appointed Director of Policy and Deputy Director-General, responsible for general insurance and life.

“All the member firms of the ABI are going through cost management programs, so why shouldn’t the ABI?” a spokesman told insuranceNEWS.com.au.

“As an organisation with fewer than 100 employees, an executive team of seven was not sustainable.”

The cut in 16 jobs will result in a 7% cost saving and leave the ABI with 98 employees.

The association says the changes aim to deliver member services more effectively and reduce operating costs.

The new structure is organised along policy, regulation, advocacy and investment lines. But general insurance, life and protection teams remain in place, with the same key policy leads at assistant director level.

“Looking at whether general insurance can fit with life misses the point,” the spokesman said.

“The markets we cover are already very diverse: motor is very different from domestic property; employers’ liability has very different characteristics when compared with travel insurance.

“What we do have are experts leading our policy work across these areas, supported by our members’ technical expertise and input working in a team to deliver results for our wide-ranging membership.

“Our new structure is flexible and open and will help us adapt to changing member priorities, as well as continuing to deliver on the issues we know are important.”

Such issues include the implementation of affordable insurance scheme Flood Re, a compensation system for mesothelioma sufferers, increasing safety for young drivers and making sure whiplash claims are properly scrutinised.