A financial services group that processes insurance claims is shutting a base in Bradford.

Capita Insurance Services said its Claims Services Division, which handles personal and commercial claims, is relocating two staff within the group and a further six are being consulted about the closure of the office on Well Street in the city centre.

Capita's other 400 staff, who work alongside Abbey National staff in Nelson Street, will be unaffected, the company insisted.

The company said it was moving away from loss adjusting into making more use of its field force and IT systems to cut costs and offer a better service to clients.

Commenting on the changes, William Dye, Managing Director of Capita Insurance Services, said: "The boundary between volume claims processing and skilled loss adjusting has blurred over recent years.

"Using skilled loss adjusters to assess small claims makes no sense, especially in the current economic climate.

"The market is demanding a new approach to claims processing and we are developing a customer-focused solution which makes financial and business sense."

Another 21 centres are also being closed in the shake-up, including Leeds. "We deeply regret the impact these changes will have on a number of our staff, and will be doing everything possible to find suitable alternative opportunities for those affected," Mr Dye said.