As part of the strategic streamlining process, the National Australia Bank (NAB), the owner of Clydesdale & Yorkshire Bank has announced that they will be making 1,400 jobs redundant in the UK by 2015. It is expected that as an outcome of the strategic review, the business will focus more on retail and small business lending predominantly focussed in Scotland and Northern England. All these changes are due to the bankís need to recover write downs of over £456 Million and an additional exposure of £120 Million due to PPI misselling. It is also expected that all the job cuts and the other savings that the bank wants to implement will help it save about £74 Million from 2015 onwards. This means NAB will take upto about 2018 to get back on its heel in terms of its UK operations. As part of the closure plans ñ 29 of the 73 financial solutions centres will be shut and also 6 back office locations will also be shut.
Kesh Thukaram, Director Best Insurance added that the announcement is no surprise at all. We at Best Insurance made a prediction last month that banks will have a massive outfall in terms of regulatory changes hitting the UK such as the RDR and also the fact that continued depressed economic conditions means that the banks are exposed to higher lending levels than what they would prefer to and with the more onerous exposure of the capital requirements that the banks will be subjected to, there is no option for the banks to get rid of the non-performing parts of the bank. Gone are the days when a bank could use one division to cross-subsidise another.
Many insurers are already declining bank employees for income protection insurance as by definition, the moment the employees get to know of impending redundancy, it can be treated as pre-existing information and will automatically disqualify them for income protection insurance. Many people working for the banks have unfortunately taken their jobs for granted and due to continuously depressed financial sector and a structural imbalance of more skilled people and less jobs, the ones losing jobs will find it harder to find a new one.
Income protection insurance pays for upto 12 months to 18 months benefit payments and upto £3000 per month can be covered. Many of the income protection policies also allow people to cover themselves for accident and sickness covers along with unemployment protection. Best Insurance has a wide range of income protection policies and its advisors compare policies and pricing and allow the customer to choose the best policy based on their individual circumstances.
Stuart Boseley, Director of Best Insurance said that more and more customers now want us to compare policies and that is what we tend to execute very well at Best Insurance.
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