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Aegon protection admin firm set to cut 25 jobs

Financial services outsourcing firm Serco is set to scrap 25 roles from the department which administers Aegon’s protection business.

The staff, which handle the insurer’s underwriting and claims, have been placed under consultation.

Serco has processed Aegon’s underwriting and claims since November 2012 after the firms signed a £170m 10-year deal.

The deal saw 330 of the 390 in Aegon’s protection department move to Serco, with 60 roles across proposition development, pricing, sales and actuarial processes remaining with the insurer.

The 25 staff placed under consultation are based at Serco’s Edinburgh office, with the rest of the firm’s workforce based at Lytham St Annes, in Lancashire.

Serco says the 10-year agreement will continue as planned.

A Serco spokeman says: “Serco can confirm that after reviewing the operational requirements for underwriting and claims, we have taken the difficult decision to centralise our operations in Lytham St Annes in Lancashire, where we currently employ around 300 staff.

“Regrettably this will have an impact on 25 roles in our Edinburgh office and we are currently consulting with employees on the proposed changes, and working where possible to provide opportunities for redeployment.”

The spokesman says service levels will not be affected by the move.

Aegon declined to comment.

Plan Money director Peter Chadborn says: “This is a worrying development, particularly when we are very reliant on the quality of service that a life office provides to us as advisers and our clients, in addition to the quality of the product.”

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