InsurE-com confirmed it will close its second biggest support office, based in Birmingham, from July 2004.
The move will see its operations centralised to its Brighton centre.
Market sources said that two of about 20 support staff working at the Birmingham office will be made redundant, with the remaining support staff working from home.
Additional staff will be employed in the Brighton centre as a result of the change.
The Birmingham office is primarily used to support InsurE-com's TAM product.
InsurE-com said a TAM computer server would remain in Birmingham to continue business continuity provisions.