Tower Insurance cuts 108 jobs in order to secure 'sustainable future' for business

Tower Insurance has announced it will be making 108 people redundant in order to secure a "sustainable future" for the business.

Tower Insurance. Source: Google Maps.

In a statement sent to 1 NEWS this afternoon, Tower chief executive Richard Harding said the job losses come as the business has seen a shift to a more digital focussed model.

"People want to do more digitally and are choosing to become Tower customers because of this," he says.

"In March almost 60% of our new business came in through our digital channels and with our new self-service portal, have had over 40% of claims lodged online in March.

"The growth we are achieving through digital channels and the number of customers now choosing to interact with us online shows that digital is the way of the future.

"Our strategy has always been to grow our business from our existing cost base, however, the current recessionary environment means that future growth will now be lower than we had planned for, and to offset that, we need to reduce our costs."

The need to reduce costs will see 108 redundancies made across the company the statement goes on to say.

"Today we spoke to our team about a proposal for 108 redundancies across our business as part of some broader action to reduce cost," Mr Harding says.

"We are not currently implementing pay cuts, or other shorter-term measures, as the proposed changes are about setting our business up for a long-term sustainable future.

"As part of our ongoing shift to become a digital company with a more flexible workplace, we are also proposing to create 30 new flexible and part-time roles that enable us to respond more effectively to the new, digital ways that customers interact with us.

"At Tower we are a close-knit team and any processes or decisions that affect our people are never made lightly. We will be supporting our team through any changes that are made with the right support," his statement concludes.