The Association of British Insurers (ABI) shut down its e-commerce unit this week, leaving two employees out of a job.

It has transferred responsibility for its electronic trading standards work to Polaris, but ABI sources have warned that other work done by the department will be dropped.

Two of the department's five employees will be transferred to Polaris, one has a short-term contract and two are unemployed.

This follows the closure of its fraud and crime department in February, which resulted in two redundancies.

Fraud boss John Wagstaff and his assistant Katherine Frost were replaced by new anti-fraud manager Paul Crake.

But Crake left his new position at the association after less than six weeks for another job offer, which an ABI spokesman said was “too good to refuse”.

Sources within the ABI, however, have said that Crake quit after finding that he would be allowed no staff.

An ABI spokeswoman said she could not comment on the future of the e-commerce employees, but that the process of replacing Crake was almost finished.

She said the ABI was reviewing its structure, to ensure it concentrated on its core activities of lobbying and representation. However, she said most of the changes planned had now been made.