The AA has moved quickly to allay concerns about the car insurance industry brought about by news that insurance giant Aviva looks set to lay off a quarter of its Irish workforce. With some 200,000 policies covering home, motor and travel insurance the AA is a large player in the industry and is keen to point out that Aviva's apparent downturn is not indicative of the insurance industry in Ireland as a whole.
"Motorists and homeowners do not need to worry." Says AA Insurance Director John Farrell. "The situation relates to one multi-national company and how it structures its operation in Ireland but it has nothing to do with the general insurance situation in Ireland where businesses like the AA are still actively operating."
The rumours that up to 500 jobs are on the line are yet to be confirmed or denied by Aviva. Instead the multi-national firm is said to be considering 'various options' and that its review is 'still under way'. However, with the company HQ recently moving from Dublin to the UK, and income down by 17 percent in some divisions, the signs are not good.
Having added 50 new jobs to its workforce this year alone the AA seems to be taking a different view to the Irish market. "There is ample opportunity for growth in Irish insurance and we have great confidence in the future." Says John Farrell. "The insurance business has always been cyclical and there is no doubt that these have been tougher years."