AXA IT workers brace for job cuts

£500m outsourcing deal with Capita to affect 350 IT roles

IT workers in the insurance industry could face a wave of job cuts

Insurance group AXA is to outsource its pensions administration function to IT services group Capita. Up to 350 UK IT staff could be affected, according to workers union Unite.

The 15-year deal with Capita will include the provision of customer servicing, policy administration, claims activity and IT support covering approximately 3.2 million life and pensions policies.

It is expected that around 1,300 AXA Life employees, based in Basingstoke, Bristol and Coventry, will be affected by the decision. Those staff are from areas of the business that currently administer products that are no longer in the market.

The staff move to Capita will take place during 2009 under Transfer of Undertakings Protection of Employment rules, although Unite is trying to secure additional guarantees for staff beyond the employment regulations.

The news follows reports that up to 200 IT staff at insurer Friends Provident will have to sign new contracts or opt for voluntary redundancy following a £200m outsourcing deal with IBM, signed in December.