Bodyshops with Royal and Sun Alliance repair contracts might have to seek repair authorisation from India when the insurer expands its administration and customer service operation.

The company is set to transfer 1,200 jobs overseas in a phased redeployment of its support functions over the next two years. Spokesman Rob Skinner is unable to rule out that some repair estimating and approval services might be among roles moved to India.

“I can’t say at this point how everything will work,” says Skinner. “Part of our back office and customer facing functions will move to India. However the key element of what we do will remain in the UK.”

RSA’s decision is part of a drive to slash its annual costs by more than £10m by taking advantage of lower wages in India. Chief executive Duncan Boyle maintains that “processing some of our work in India will help control costs and give greater operational flexibility”.