Royal & SunAlliance (R&SA) is planning to close the 12 regional offices of Property and Casualty Services (PCS), the loss adjuster it bought from Independent Insurance.
Up to 60 support staff could be made redundant and PCS's network of 300 loss adjusters will now work from home.
The PCS support system will now be centralised in its Cheadle office.
An R&SA spokeswoman said: "There are 12 offices in the UK with four or five support staff in each office. There may be some lay-off of support staff, but they will all have the opportunity of being reabsorbed somewhere else in R&SA."
She added that PCS loss adjusters would have ISDN lines installed in their homes to allow digital dictation to be sent as a voice attachment on email.
"The main drivers for this decision are obviously the low cost advantages of having staff working from home. It would not work, however, without the technological ability to work from home."
PCS staff, including loss adjusters and administration staff, transferred to R&SA in July, after the collapse of Independent Insurance. The deal, worth £3m, brought the number of in-house loss adjusters at R&SA to 800.
The move represented part of R&SA's strategy to keep 85% of claims in-house and reduce the amount of work carried out by its panel of adjusters, including Crawford & Co, GAB Robins, Capita McLaren and Cunningham Lindsey.
R&SA previously took on 300 home claims staff from Cunningham Lindsey. Other measures R&SA has taken to in-source include buying four motor garages.