TL;DR

German insurance group Allianz plans to cut between 1,500 and 1,800 jobs in its travel insurance division over the next 12 to 18 months. The reductions, primarily affecting call centre workers, come as AI increasingly replaces manual customer service processes.

AI Transformation in Insurance

Allianz Partners, the travel insurance arm of the German insurance giant, is set to make significant workforce reductions as artificial intelligence takes over tasks previously handled by human employees. The division currently employs 22,600 people, with roughly 14,000 handling customer inquiries and claims by phone.

A source familiar with the plans told Reuters that the job cuts would primarily affect call centre operations, where AI is increasingly capable of managing routine customer interactions and claims processing.

Company Response

Allianz declined to comment specifically on the planned job reductions. However, Allianz Partners issued a statement acknowledging that the company is “actively examining how technological change will affect all employees,” noting this could “also impact roles that are currently heavily reliant on manual processes.”

A company spokesperson confirmed that confidential talks with works councils are currently taking place. Industry publication Versicherungsmonitor first reported on the planned cuts.

Looking Forward

This announcement adds to a growing pattern of major corporations citing AI advances when announcing workforce reductions. For businesses in customer service-intensive sectors, the Allianz decision signals the accelerating pace at which AI is becoming capable of handling routine interactions. Organisations should consider how AI might transform their own operations while planning for the human impact of such transitions.

Source: Reuters