According to reports, the changes are part of a national restructuring which will see as many as 2,000 job cuts.
The move is a response to the European Commission, which ordered it to sell the insurance business by 2013.
A call centre in Glasgow, which employs 640 people, is to see 400 job cuts while the rest of the workforce is expected to be transferred to a different part of the organisation.
In a statement, RBS said: âWe announced in May that we were looking to consolidate our UK office network as part of our plans to achieve efficiencies across our insurance business as we prepare it for sale as mandated by the EU.
âHowever we do not comment on speculation and have a commitment to our staff that we will always tell them first if we are announcing any changes that affect them."
As many as 16,000 people currently work as part of the bankâs insurance unit, which includes firms such as Churchill and Direct Line.
By Jim Ottewill