Zurich has today confirmed that, following proposals outlined last month, it is to exit the new-home warranty and Building Control markets after an extensive and thorough review.
As a result Zurich Building Guarantee will cease taking on new business for these products, including the registration of new sites with immediate effect.
Zurich has been a provider of structural warranties and latent defects insurance to developers and self-builders since 1993. However, the sustained decline in UK house-building, as compounded by the economic downturn and continued uncertainty concerning the pace of recovery, means that this no longer represents a viable market for Zurich’s business.
The organisation will now enter a period of transition as it begins to implement a phased ‘run-off’ of this business. Zurich will honour in full all commitments to existing customers and policy holders and ensure that all warranties and contracts are fulfilled. It will also ensure sufficient resource to manage all site inspections, Building Control activity and any claims or queries. Policies and certificates will be issued in the normal way as sites already registered commence and are completed.
The roles of the 41-strong team will now gradually reduce in line with associated workload and as the details of the withdrawal continue to be worked through. Ultimately a small core team will remain in place to manage the remaining business from approximately September next year.
Where possible Zurich will support affected employees to redeploy within the organisation. It will also provide outplacement support and retraining opportunities in order to help employees continue with a career outside of Zurich.
Managing Director for Zurich Municipal, Rob Allison said: “The decision to withdraw from these markets has not been undertaken lightly and is driven by sound business and financial factors. More than ever in these challenging times, we must do all we can to protect our profitability and sustainability for the ongoing benefit of all our customers. This is no refection on the quality and professionalism of the team, whose performance has been fundamental to Building Guarantee’s significant growth over the last ten years. We understand this is a difficult time for those of our people who are affected and they will have our full support over the coming months.”
For further information contact
Louise Naqvi, Zurich Financial Services on t: 01489 561574 m: 07875 885120
e: louise.naqvi@uk.zurich.com
Notes to Editors:
Zurich Financial Services Group (Zurich) is an insurance-based financial services provider with a global network of subsidiaries and offices in North America and Europe as well as in Asia Pacific, Latin America and other markets. Founded in 1872, the Group is headquartered in Zurich, Switzerland. It employs approximately 60,000 people serving customers in more than 170 countries.
