Major change at Hastings Direct

The plan is to take on more than 150 new employees during the next two or three months bringing the total head count to approximately 800.

Chief Executive Officer Edward Fitzmaurice told staff on Tuesday afternoon that Hastings and Equity Direct is to shut down two of five call centres and expand its operation in Bexhill.

Mr Fitzmaurice also announced a 1 million refurbishment for the building in Collington Avenue.

He told the Observer: "We have got a great operation down here. We want to build on that in a positive way.

"It is great news for Bexhill - it is a big investment in Bexhill."

Having informed staff he said: "There was quite a buzz. They can see the opportunity for them personally, and they can see the opportunity for friends and family... and for Hastings Direct as well.

"People are really excited by the potential of what we want to do here in Bexhill."

The insurance company will wind down its business in call centres in Manchester and Leicester with a loss of 300 jobs and transfer more of its work into Bexhill.

Meanwhile owners Insurance Australia Group has been reviewing all operations to assess where it should focus and this week announced several parties are interested in buying the distribution businesses in the UK - including Hastings Direct.

Mr Fitzmaurice claimed a main reason for change and restructure was the way customers now choose to buy insurance, which is via the internet, and commented: "There has been a change in customer shopping preferences. More customers choose to deal with us over the internet, whereas 100% of sales were on the telephone ten years ago."

He believes it a company strength to retain contact centres in Britain so that customers feel confident they are talking to an operator within the UK.

"We have to listen more to what our customers want - how they want to pay for insurance and look for better insurance products. Our challenge as a business is to develop better products for customers and deliver them with great service and deliver them cost effectively."

He believes Hastings Direct has worked to improve staff morale, with a clear structure in place for career development, and two months ago a significant pay increase.

Of possible redundancies in the near future he said: "I can never say never. Businesses are always changing. Our plan is we will increase from 620 staff here probably to 800 in the next 12/18 months, and employ many more people on the site. It may be people need to be in different roles. Some might not want those roles."

Harry Hastings will make a return to television screens by the middle of August, having not been seen since late March, and job adverts placed in the week or so, although anyone interested in applying in writing can do so immediately.

Mr Fitzmaurice added: "We will continue to improve how we deal with customers.

"For me this is great news for people here and great news for Bexhill."