Updated
Australian insurer AAMI is closing all 24 of its branches within the next two months due to tight budgets and more customers doing business online.
The company will continue to provide telephone and online services.
The insurer says 102 staff will be affected by the decision but it hopes to move up to half of them to call centres.
AAMI is owned by Suncorp, which recently saw a 39 per cent fall in first-half net profit due to the natural disasters over the summer.
The company has branches in Queensland, New South Wales, Victoria, Tasmania and the Northern Territory.
AAMI denies the closures are a cost-cutting measure, saying they are a response to customers doing more business online.
Spokesman Reuben Aitchison says it is not worth keeping the branches open because such a small number of people use them.
"There's been significant growth in the internet channel," he said.
"The amount of business and transactions that is now going through our branches has dwindled to the point that it now represents less than 2 per cent of our revenue."
First posted
Chat about this story w/ TalkitaSource: http://www.abc.net.au/news/stories/2011/06/03/3235039.htm
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