Although there are macroeconomic implications, and negative multiplier effects associated with this news from Swinton Insurance, I think that it's more pertinent as a commentary on the changing nature of the market.

I was amazed to hear of how many branches that Swinton had, and how many it's closing. I don't think I've ever bought insurance in-branch. Over the phone, yes, at one time; online, increasingly, and then I occasionally use the phone to chase a better deal.

But it is clear that the market has changed and the online business model changes the cost structure of the firm reducing fixed costs. I hope that top year economists are able to discern what this means for the equilibrium level of output of a firm. It's not a straightforward as it seems.