Troubled loss adjuster reorganises loss recovery unit following further business losses
Capita Insurance Services is revamping its uninsured loss recovery unit, leaving 38 staff facing uncertainty over their jobs.
The company will outsource more of its legal work to solicitors, while keeping claims processing in-house.
Managing director Bill Dye said 38 staff were affected by the reorganisation. It was hoped that all would be redeployed within the company.
It was too early to know if there would be any compulsory redundancies, he said.
"We are changing the way we are handling that part of the business," he said. Some things may go out and it is in the nature of uninsured loss recovery to use external resources like solicitors.
"But we are still absolutely in the business."
The news comes after a rocky week for Capita.
It was ejected from Legal & General's panel, which Dye said was unfortunate but "in the nature of the business".
He said: "Legal & General was a valuable customer.
"We aren't happy about it, but for us it doesn't change anything else about what we're doing within the rest of the big picture."
The Capita group has also had a volatile period on the stock exchange.
Its stock was up by 12.45% late on Tuesday afternoon to 199.5p, after losing 8.65% last Thursday and 5.79% on Friday. It was trading at more than 400p in May.
Dye said it had fallen in line with the sector and his task, after just two weeks in the job, was to focus on producing profitable business.
"The markets will do what the markets will do," he said.
Capita handles more than 1.5 million insurance claims a year and settlements worth £1.5bn. It deals with 80 Lloyd's syndicates and 70 insurers.
