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May 9, 2019

TAL to restructure Asteron Life Insurance business; jobs at risks

TAL Dai-ichi Life is reportedly planning to restructure its newly acquired brand Asteron Life Insurance, putting a number of jobs at risk.

In August last year, TAL purchased Asteron Life Insurance business from Suncorp for $775m.

In an email to employees, TAL CEO Brett Clark said although the company was attracted by having a second brand in its portfolio at the time it was bidding for the asset, upon reflection it was not in the best interests of its customers or its advisers to continue with both brands, reported The Australian Financial Review.

“At present our retail channel has two similar propositions from TAL and Asteron. While this was appealing to us during the acquisition of Asteron, it is also clear that the retail market is undergoing significant structural change,” Clark told the staff, according to the publication.

Clark has order staff to stop selling the Asteron life insurance products product from 1 July.

The insurer has launched a consultation process for the affected staff. However, it said that exact number of job cut will be announced once the restructuring process is completed by mid-June.

The publication cited a statement from the company as saying there would be “a reduction in the total number of roles in the retail channel across TAL and Asteron”.

“Where this is unavoidable we will provide redeployment opportunities to as many people as possible, subject to availability and suitability” the spokesman said.

Clark has accepted that it is going to be tough time for the retail distribution, underwriting, product and pricing teams both TAL and Asteron.

Earlier, TAL fired 50 staff after they were found involved in high-pressure direct sales model under its own brand Insuranceline.

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