Regional closures will see 300 jobs axed

Capita Insurance Services has announced changes to its Claims Services Division that will result in the closure of 22 regional offices.

The closures come as a result of the introduction of a new regional service infrastructure to deliver Capita's claims services across the country. Around 300 jobs will go, the company said. The network will comprise its existing four service centres and 12 regional offices (see map).

Capita Insurance Services managing director Bill Dye said: "We deeply regret the impact these changes will have on a number of our staff, and will be doing everything possible to find suitable alternative opportunities for those affected."

He said that loss adjusting has to "change because there is no value in site visits for low value claims" and that Capita's recent investment in IT would allow remaining staff to work from home.

Some Capita claims staff would be relocated. A voluntary redundancy programme has also been introduced.

Dye said: "We are going through the human resources process at the moment. Our customers should carry on contacting the offices they have used historically."

The following regional service centres will be utilised, including Glasgow, Edinburgh, Leeds, Manchester, Birmingham, Hinckley, Watford, London (Dukes Place and West End), Bristol, Redhill and Belfast.

Dye said the decision to streamline the claims division was made after a detailed feedback from its staff and clients by market research company Troika.

"Nearly 80% of the insurance industry's small claims are under £200. We needed to find a way of handling these claims," said Dye.

Responses included comments such as "insurers need to consider alternative ways to manage their volume claims processes. Currently no effective alternative is being offered to the traditional approach" and "appointing loss adjusters for the high number of property claims reported is no longer a cost effective approach".

Dye said: "The market is demanding a new approach to claims processing and we are developing a customer-focused solution that makes financial and business sense."