MORE than 850,000 Hill House Hammond customers were today receiving letters telling them the insurance broker is closing all of its 230 UK offices.

Hill House Hammond - part of Norwich Union - is axing 1,200 jobs and transferring another 400 to other NU operations.

All HHH offices will close by the end of the year - including branches in Moordown, Poole, Broadstone, Christchurch, Ferndown, Wimborne and New Milton.

Each of the seven offices serves around 3,700 customers - more than 25,000 people across this area.

Together the seven offices employ 25 workers - seven of whom work at the largest branch in Parkstone Road, Poole.

Bristol-based HHH was established in 1959 and sells mainly personal insurance - such as car and home policies - on behalf of other insurers.

Norwich Union Insurance chief executive Patrick Snowball said the move reflected changes in the way people now buy insurance.

"Many customers now understand their motor or home insurance needs and will shop around themselves for the best deal.

"The number of customers who shop on the high street to arrange their insurance has also fallen significantly as many prefer to deal directly with insurers by phone or over the internet."

Industry figures show 17 per cent fewer people used brokers to buy motor and home insurance in 2002 than in 2000.

The company will now undertake a 90-day consultation programme with staff before business is transferred to the Norwich Union Direct operation.