AA to invest in UK call centres

The AA is to invest in new IT and telephony systems for its two UK insurance call centres.

The investment aims to build the AA’s market leading position in an increasingly cost-sensitive insurance market.

The 1,000 staff at the Newcastle call centre and 550 at Cardiff were told of the development plans on 23 June.

Explains Kevin Sinclair, managing director of AA Insurance: "Our customer service network is well established with highly-motivated staff but it is important that we invest to both significantly grow the business and improve the service we offer to our customers. At the same time we need to make further cost savings to remain competitive and we have spent the past six months reviewing how best to do this.

"We expect to spend around £8 million in developing the vital information systems that our staff use when customers buy insurance from us or are making claims. The investment includes upgrading the telephone systems so that customers get through to the AA even faster than they do now."

Kevin Sinclair said that given the investment needed, the option of moving the call centre operation to India — as many UK insurance companies have done — was considered.

"But we have considerable belief in the commitment shown by our UK insurance call centre teams. Although going off shore would be costly it would have offered substantial long-term savings

"But we don’t believe it would bring immediate service benefits for our customers. Finding the right people with the right skills would be a major hurdle, especially as we already have these skills here in the UK."

Kevin Sinclair points out that the AA insurance business has developed considerable momentum and is already attracting more customers. "It’s important that we continue to invest to grow the business. Our call centre teams will play a fundamental part in both developing our customer base and building our reputation.

"But perhaps most important of all, our UK call centre staff will differentiate us from our competitors who have chosen the off shore route."