CCC International is to close its loss-making inspection services subsidiary DW Norris and concentrate on its Motor Claims Technologies and related consultancy services business.
Reid Simpson, CCC vice president and chief financial officer, said DW Norris, acquired in 1999 to provide a full outsourcing service, was closed due to "significant operational problems".
An internal communication from CCC revealed that the shift in the insurance market away from outsourcing the claims handling process was key to the underperformance of the inspection service.
Peter Stott, chief operations manager, said: "In future, CCC International will focus its ongoing investment and operations on the growth of its core business targeting insurance companies across Europe."
Parent company CCC Information Services Group has set aside more than £4m for the closure of DW Norris, leaving the international operation with a reported operating loss of around £7m.
Net revenue for CCC International rose last year to £5.5m from £3.8m in 1999.