American Family Insurance (AmFam) has plans to consolidate the claims departments of all its businesses – potentially leading to a number of job cuts.
Under the plan, AmFam’s group of companies – which includes The General, Homesite, Main Street America Group and CONNECT – will merge all of their claims departments.
“It’s going to allow us to be more consistent across claims,” AmFam spokesperson Erin Johansen told Wisconsin State Journal.
The consolidation will result in voluntary buyouts, where some employees receive severance pay and extended health insurance plans, Johansen added. But the representative did not reveal how many employees have taken the buyout.
Wisconsin State Journal reported that that the AmFam group of companies has about 4,200 claims workers. Nationwide, the company has about 13,600 employees.
“We are a strong and stable employer,” Johansen said. “We want to ensure the right staffing for our customers.”
Last month, AmFam announced that current enterprise president Bill Westrate will succeed Jack Salzwedel as chief executive officer of the company on January 01, 2022.
