Business

Hughes Insurance closes more than half its branches

Hughes Insurance ran a high-profile advertising campaign featuring Conor Grimes and Alan McKee
Hughes Insurance ran a high-profile advertising campaign featuring Conor Grimes and Alan McKee Hughes Insurance ran a high-profile advertising campaign featuring Conor Grimes and Alan McKee

HUGHES Insurance is to close more than have its branches across Northern Ireland with the loss of 20 jobs.

The company said the restructuring was down to changes in consumer habits with more people purchasing insurance policies online.

The Newtownards-headquartered broker will close its outlets in Ballymena, Ballynahinch, Lisburn, Magherafelt, Newry and Omagh.

However it said the remaining branches in Coleraine, Derry, Glengormley, Portadown and Belfast were "earmarked for growth".

It is the first major change for the company since it was acquired in 2014 by American giant Liberty Mutual Insurance.

Hughes Insurance chief executive Brian McDowell said: "In a relatively short period of time consumer behaviour in the local insurance industry has changed considerably.

"Ninety per cent of our customers deal with us either online or on the phone, with 50 per cent of all our business originating online. As a result, we have witnessed a steady decline in branch footfall. Therefore, keeping our current branch network was unsustainable."

Hughes said it had written to all affected branch customers about the changes.

He said the business planned to spend £1 million on a new e-commerce platform "to ensure Hughes Insurance remains one of Northern Ireland’s leading and most competitive insurance brokerages".

The business operates exclusively in Northern Ireland selling motor, van, home and commercial insurance.

The north's insurance landscape has seen several big changes in recent months.

In February, Abbey Insurance acquired rival Open + Direct in a multi-million-pound deal that made it the north's largest locally owned insurance broker.

The combined operation now has a portfolio of 28 branches across Northern Ireland.

And earlier this week, Omagh-based Dickson Insurance Brokers announced it had acquired Sam McCullough Insurance Services which has traded in Newry for three generations.