Direct Line insists it will try to find work for hundreds of staff made redundant across the North West.
Bosses told 485 workers in Liverpool that their office will close. 80 people at the firm's Manchester site also face losing their jobs.
The firm is cutting costs nationwide.
– Steve Maddock, Managing Director of Claims, Direct Line Group
The proposed closure of our Liverpool claims centre was not an easy decision to make and we understand the effect this announcement has on our people. We have now commenced a period of consultation with those potentially affected and they will be supported by their employee representative bodies.
While this is currently a proposal, the plan is not immediate. In the months to follow we aim to do as much a possible to mitigate the impact of potential redundancy through redeployment and by working with employers in the local area to identify opportunities.
Direct Line has told ITV that it is axing 80 jobs at its Manchester office.
The insurer already announced the closure of its Liverpool site this morning. 485 people face redundancy there.
A spokesman said that affected staff were offered the "the day off" after receiving the news.
Plans for around 2,000 job losses at Direct Line to reduce costs have been branded as “a savage bolt from the blue” by the country’s largest union, Unite.
Unite said that it had several hundred members working for the company but no union recognition.
– Unite national officer for finance Dominic Hook
The fact that Unite, the union with the largest number of finance sector workers in the country, has been refused recognition makes it easier for Direct Line to announce these savage cuts out of the blue.
Unite will continue to strongly oppose anti-union bias where it exists in the finance sector and will give all the support we can to our members at Direct Line on an individual basis.
– Paul Geddes, Chief Executive Officer of Direct Line Group
While we continue to invest in the business with the aim of winning in a market which is changing fast, it’s clear that we need to become more efficient to deliver the good service and value our customers expect.
We have not made these proposed changes lightly and understand the impact they will have on our people.
As we have done in the past, we will deal fairly and carefully with those impacted, and do all we can to support them through these changes.”
Direct Line is closing its office in Liverpool by the end of the year. The firm is axing 2000 staff across the country - 485 of them on Merseyside. The insurer says it hopes to transfer some workers to its site in Manchester.