Complete Cover report details outsourcing to South Africa and job cuts

The statement in the motor broker’s annual results to 31 December 2021 added that the process would continue through 2022.

The filing detailed that turnover at the business dropped in 2021 to £14.03m from £9.9m the year before.

The loss after tax grew to £2.49m in 2021, from a deficit of £191,000 the previous year.

In the latest update Complete Cover stated that 2021 had been a challenging year as it traded through the impact of the pandemic.

The company admitted to being unable to “flex its cost base enough to offset the reduced income”.

It added that this led to a review of the entire company set up “with a view to increasing flexibility and reducing materially the overall cost base”.

Along with the outsourcing plan, the 2021 results committed to a reduction in back office support introducing more automation and the removal of duplication, from the final quarter of the year and into 2022.

Key changes also included reviewing systems infrastructure primarily adopting one proprietary system.

The list of initiatives concluded with moving to a more online model removing labour intensive call centre work and a review of capacity providers “to excel with a few rather than manage money”.

Streamlined

Compete Cover wrote: “The consequences of the above changes will see a much-streamlined CCG where processes and procedures will change considerably; this in turn creates the efficiencies and productivity gains required to the deliver flexibility needed in the current market environment.

“Following the execution of this strategy, CCG will be a smaller business initially, however it will be both lean and efficient.”

The business reported that in the latter half of 2022 the management would consider further strategic options.

The ultimate plan is to grow the policy book and return the business to profitability in 2023, the strategic report added.

The company’s headcount dropped in 2021 to 281 [sic] from 340 in 2020.

Administration saw the biggest change with a loss of 55 employees leaving a total of 165, whilst the sales team reduced by 23 staff to 117.

Insurance Age has reached out to Complete Cover’s parent company Abacai for comment.

Changes

Earlier this year in January, CCG confirmed potential job losses as part of a review of the business.

Two weeks ago, Insurance Age revealed that Bob Thaker, former UK CEO of Hiscox, had taken over as CEO of CCG.

He was also listed as director of Hyperformance and Key Claims and Administration on the same day.

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