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Internet killing the Insurance Contact Centres

The insurance industry reached its peak size - 250,000 people employed directly in insurance and pensions - in 1991 when the then new-fangled direct insurers hit their stride and the public abandoned the high-street broker to buy their cover via contact centres.

Since then, however, insurance employment figures have been falling steadily, dropping to  230,000 in 1999, 225,000 just a year later and  208,000 by 2004 as the popularity of buying insurance via a contact centre evolved into buying online - a sales operation that requires far fewer staff.

Insurance is being sold over the internet by new companies with little more than a single office and a few phones. Swiftcover.com, the first entirely internet-based insurer, has sold more than 100,000 policies in its first year of operation but has fewer than 100 staff.

Swiftcover.com expects to never employ more than 250 people.

19th September 2006

September 2006 - Internet killing the Insurance Contact Centres