Allianz will cut 650 roles across its UK insurance business as part of a wide-ranging operational restructure. The company informed employees on Wednesday morning, citing the need to simplify processes and respond to rising claims costs across its commercial, speciality, and personal lines.
The decision affects more than 10% of Allianz’s UK workforce, which currently numbers around 6,000. The insurer is headquartered in Guildford and operates across the country through its Allianz Holdings and LV= brands. It said the cuts would be completed by the end of 2025.
In a statement, Allianz said the move followed “shifting preferences towards digital, self-service customer support and changing market dynamics in claims, particularly motor.” The company confirmed a formal consultation with employees is now underway and that full support will be offered to those affected.
The job losses form part of a wider transformation drive backed by £400 million in investment across 2024 and 2025. CEO of Allianz Holdings, Colm Holmes, has said the funding is being used to modernise UK operations through digital trading tools, customer platforms, and pricing systems.
Allianz has faced cost pressures in recent years due to inflation in motor and weather-related claims. The Association of British Insurers (ABI) reported in May that UK motor claims costs had risen 20% year-on-year. The company has also rolled out new automation systems across claims and underwriting to help improve efficiency.
The cuts come less than a year after Allianz signed a ten-year naming rights deal with the Rugby Football Union, rebranding Twickenham as Allianz Stadium in a partnership reportedly worth over £100 million. Allianz has said the agreement supports long-term brand recognition in the UK retail market.
Allianz’s recent UK acquisitions include the £1.08 billion purchase of LV=’s general insurance business in 2019, followed by the integration of Legal & General’s GI division. It also underwrites the primary layer of Marks & Spencer’s £100 million cyber insurance policy, providing cover for the first £10 million.
The group’s investment arm has separately raised concerns about the UK’s tech landscape. In May, Jeremy Gleeson of Allianz Global Investors noted that fewer high-quality UK tech companies are listing on the London Stock Exchange, with New York seen as a more attractive destination for growth listings.
Allianz declined to comment further on the restructuring. The formal consultation process is expected to continue through the second half of the year.
