MORE than 30 insurance staff will lose their jobs at a claims office in Newcastle.

The insurance operation of the Co-op is to shed more than 170 jobs nationwide and close seven claims offices as part of modernisation plans, it was announced yesterday.

The Co-operative Insurance Society (CIS) said it would also be cutting 350 back office posts, but said a similar number of roles would be created at its call centres.

The Newcastle claims office of the CIS, which employs 34 staff, is likely to close in spring, following a 90-day consultation period.

Amicus said 500 jobs could be lost, which it described as a real blow.

Regional officer Ian Waddell said: "Our members have worked hard for the company, despite years of under-investment in technology and training."

But the union said CIS had resisted siren calls to move jobs to other countries, such as India.

CIS said it would also close offices in Belfast, Edinburgh, Cardiff, Sutton, Maidstone and Plymouth, as well as at Newcastle.

The closures will affect 175 staff out of a total of 727 working in 18 claims offices.

Chief executive Mervyn Pedelty said: "At the heart of our modernisation programme is the need to enhance the quality of service we deliver for our customers.

"By improving the efficiency of our processes and transferring much of the existing back office work to our new customer contact centre, we will be taking a very important step forwards in achieving that goal.

"Given our commitment not to off-shore customer contact work, we have been encouraged by the response of the trade unions in our discussions, and I know that we are building a customer contact centre which will be the envy of others, within the heart of the North-West."

CIS employs 4,000 staff and Mr Pedelty said every effort would be made to redeploy those affected by the changes.

Amicus said it understood CIS had to modernise to stay ahead of a cut-throat market, saying that it hoped the changes could be managed in a way that reflected the Co-op's ethics and values.