Economical Insurance to cut 145 jobs as part of business transformation program
Waterloo, Ontario-based Economical Insurance announced the next phase of its business transformation program as it seeks to streamline and automate its operations in order to increase productivity, reduce costs and improve service to brokers and customers.
As part of the transformation, the mutual insurer said it will be cutting 145 positions at 14 of its offices across the country. In a statement, Economical said this reduction will improve the effectiveness of a number of operational roles, processes and support functions.
“Constant evaluation and adjustment is necessary for the long-term health of any business. In the increasingly competitive Canadian property and casualty insurance industry, it is vital,” said a statement from Karen Gavan, president & CEO of Economical. “Over the past several years, Economical has focused on improving the fundamentals of our underwriting and pricing to establish a strong foundation. The fruits of those efforts are shown in the strength of our recent financial results. Our next focus is to build on that foundation by improving our productivity with industry-leading processes to foster future growth and sustainable competitive advantage.”
“We have kept our people informed about the business transformation program and that staff reductions could be expected to help address the changing needs of our company,” Gavan added. “Even so, this has been a difficult decision and we recognize the challenges facing the affected employees. We are committed to helping them with this transition and are proud of the contributions they have made to the Company. We wish them well as they move forward.”
Economical will recognize the costs associated with the staff reduction in the Company’s fourth quarter financial results.