The company will said that the move would allow it to save a further 130 million pounds ($200 million) annually by 2014, targeting a cost-base of about 1 billion pounds in 2014.
Direct Line Insurance is Britain's biggest car insurer, they have about 15,000 employees, and has been cutting costs and avoiding high-risk drivers since 2010 to protect itself from stiff competition, and new regulation in the British motor insurance market.
Several insurers, including Aviva Plc (AV.L), AXA (AXAF.PA) and Standard Life (SL.L), have cut their workforce in recent months in an effort to reduce costs and prepare for new regulations that include higher capital requirements.
The company said the job cuts announced on Wednesday would include head office and support positions.
