RSA Insurance Faces Potential Job Cuts Amid Strategic Shift
RSA Insurance has revealed plans that may result in the elimination of up to 250 positions at its Lynchwood House office located in Peterborough. This decision follows the company’s strategic exit from the personal insurance market. Currently, RSA employs approximately 450 staff members in the city, and these roles are now under consultation.
The insurer’s decision comes on the heels of Nationwide selecting Aviva as its new home insurance provider earlier this year. RSA previously managed the Nationwide account but announced in December 2023 its intention to exit the personal insurance sector. Aviva is set to handle the transition, managing the business from its Perth and Glasgow offices starting in autumn 2025.
RSA confirmed in a Peterborough Telegraph report that ongoing discussions with Unite are taking place, with consultations expected to continue. A company spokesperson indicated that a small number of roles would be reduced by September 2025, with the majority of job cuts projected for 2026 as the Nationwide account winds down over a two-year period.
The insurer is committed to redeploying staff where feasible and offering robust support throughout the transition. This includes career transition services, recruitment events, and outreach to other local employers.
Meanwhile, RSA’s parent company, Intact Financial Corporation, recently disclosed its fourth-quarter 2024 financial results, highlighting a 5% rise in operating direct premiums written (DPW).
In the past six months, several UK insurance firms have announced job reductions driven by various strategic and economic factors. Direct Line Group announced in November its intention to cut approximately 550 positions, equating to about 5% of its workforce. This move is part of a broader effort to achieve £100 million in cost savings by the end of 2025.
Direct Line has been grappling with declining customer policies and gross written premiums, challenges attributed to a competitive market landscape and rising claims costs. These issues have contributed to a series of profit warnings and a significant decline in share price. The latest job cuts follow earlier reductions in 2014 when Direct Line closed 14 of its 27 UK offices, resulting in further redundancies.
Aviva, having acquired Direct Line in a £3.7 billion transaction, also announced that up to 2,300 job cuts are anticipated over three years due to overlapping roles, impacting approximately 5-7% of the combined workforce. Aviva aims to achieve £125 million in annual pre-tax cost savings within three years, with expected one-off integration costs around £250 million. Prior to this, Aviva had reduced its workforce by around 1,800 roles over three years in a 2019 restructuring plan.
Unite the union, representing employees at both RSA and Aviva, mentioned that more than 300 jobs across RSA’s UK operations could be affected. The union urged both firms to collaborate in minimizing redundancies. Unite national officer Caren Evans stated that the proposed cuts would significantly impact the Peterborough community and emphasized the union’s engagement with the company to explore alternatives and secure redeployment where possible.
Sharon Graham, Unite’s general secretary, criticized the decision, stating that RSA’s workforce is facing avoidable losses. She noted that the affected employees possess specialized skills deserving of appropriate treatment and consideration.
Peterborough City Councillor Julie Stevenson expressed concern on social media, acknowledging RSA as a key local employer in Orton and highlighting the community’s apprehension over potential downsizing.
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