Direct Line Group (DLG) will slash 800 jobs and staff across its UK business as customers prefer online transactions.
The company intends to shift from traditional led insurance services to digital insurance based on emerging consumer demands.
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A DLG spokesperson said: “Like many companies we have to prepare for changes in the way we operate, reflecting changing customer behaviour where people are increasingly opting to interact with us digitally.
“We are therefore proposing a number of changes across the business which sadly means the loss of jobs for some of our people.”
The redundancies account for 7% of its workforce which stands at about 11,000 employees.
The move is in line with a £60m cost-saving plan announced by the motor insurance firm’s CEO Penny James in November last year.
The insurer, which also owns the Churchill and Green Flag brands, has informed staffs about its decision.
The process of axing the jobs will begin in 2021 and will be completed by the end of 2022.
Additionally, one of the company’s sites has been scheduled to be shuttered down in 2022, Sky News reported citing a person aware of the plans.
DLG offers a suite of general insurance products such as car, van, home, landlord, pet, and travel insurance and as well as breakdown cover.
The group provides life insurance services as well and its Direct Line for Business subsidiary offers a suite of business insurance products to landlords and small businesses.
