Wesleyan Assurance has put a floor under 200 jobs in Birmingham by scrapping plans to move its back office operations offshore.
Instead, the £3 billion-plus society is to invest £10 million in the administration systems at its Colmore Square headquarters.
The insurer, which was founded in Birmingham in 1841, has been looking at the possibility of outsourcing some of its admin work for two years.
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It has looked at setting up operations in South Africa and India as well as other parts of Britain.
It has now decided to keep everything in house in order to maintain high standards of service to its policyholders, operations director Derek Byfield said yesterday.
Outsourching, or offshoring, has become a controversial issue for financial services companies with major companies such as Norwich Union group Aviva accused of " exporting jobs" to countries such as India.
"Like every other company in the industry we have had to seriously consider the options for outsourcing our administration," said Mr Byfield.