Zurich has announced it will close its Leeds service centre by the end of 2003, resulting in 270 job losses.
A Zurich spokesperson said: "We have too many locations that carry out work. We need to try and amalgamate our work centres to reduce costs in such a competitive market."
Zurich's three other Leeds offices will not be affected by the closure.
Zurich has also announced plans to increase capacity in its Cardiff service centre.
A new service centre, which can accommodate up to 600 staff, will be built with financial assistance from the Welsh Development Agency, increasing staff numbers from the current 250-300.
The new service centre will open in the first quarter of 2004.
