Norwich Union (NU) has announced it will shed 65 loss adjusters from its household claims division.

The insurer plans to outsource low-value claims of less than £2,500, which total about 25,000 each year.

Since its merger with CGU, the company has been phasing out its internal loss adjusters, with many being encouraged to work from home.

A spokesman for the insurer said: “Norwich Union has been reviewing its loss adjusting strategy for low-value claims, but mainly because organisations brought with them different strategies – one outsourced the provision of these services and the other had a strategy of resourcing in-house.”

He added that the company would attempt to transfer as many of its loss adjusters as possible to the selected outsourcers by the end of September, although the companies taking over the business have yet to be announced.

A review of NU's loss adjuster panel was recently completed, with designated adjusters being assigned to different areas of the business – household, commercial, major loss and subsidence.

Miller Fisher and Woodgate & Clarke were dropped from the panel. It now comprises Crawford & Company, Cunningham Lindsey, McLarens Toplis, The Claims People, Ashworth Mairs and GAB Robins.

NU has been shaking up its business in recent months and has dropped out of a number of niche markets.

Last month saw 40 redundancies at the travel and leisure division in Croydon, which was owned by CGU prior to its merger with NU.

The insurer said the move was due to a duplication of resources and said it planned to concentrate on selling individual policies through retail, intermediaries and corporate partners.

Also in June, NU decided not to renew any bus or coach policies.