Budget Financial Services has announced it is to close its Redditch contact centre, where 86 of its staff are based.
Budget acquired the centre in October last year as part of the Dial Direct group of companies.
The move follows a review of the group to determine how best to achieve its objective of becoming one of the top three insurance intermediaries in the UK specialising in personal lines.
The review found that the group could implement its plans for growth via its contact centres in Peterborough, Coventry and Sunderland alone.
The Redditch centre had also raised concerns over profitability and was in need of substantial investment in technology to bring it up to date.
Group chief executive Peter Winslow said the decision had been extremely difficult to make.
"However, we believe that the business case for doing so is overwhelming and we are looking to secure the future success of the Budget Group as a whole," he added.
He said there would be some job opportunities available elsewhere in the business for the staff affected.
