AAMI says its decision to close its national network of offices has been taken because most people now use phone or online facilities to buy insurance.

The move will see 24 offices in NSW, Queensland, Victoria, Tasmania and the Northern Territory closed within the next two months, affecting about 100 staff.

But the Suncorp subsidiary plans to redeploy employees to other areas within the group wherever possible.

“This is not a headcount reduction exercise,” spokesman Reuben Aitchison told insuranceNEWS.com.au. “We will need many of the people who currently work in our branches to support our other channels, and it’s our intention to redeploy staff into comparable roles within AAMI and the wider Suncorp business.”

But the Financial Services Union has warned AAMI employees not to accept or reject any roles offered by the company until they have consulted their union representative.

Mr Aitchison says a review of branch activity and revenue showed the national network has steadily diminished to represent only 2% of the insurer’s income.

He says research has show that in recent years customers have preferred to transact business over the phone and online.

“This trend is expected to continue over the coming years,” he said. “As a result, we have made the decision to close our branch network and focus our investment on our customers’ preferred channels.

“We will still be here for our customers 24/7, with a real person answering the phone.”

AAMI says for those who don’t use credit cards to pay their premiums will still have alternatives available to them, including being able to make payments through Australia Post braches.