Allianz Signals Up to 1,800 Job Cuts as AI Transforms Insurance Call Centers

Insurance giant Allianz signals job cuts in AI shift

Frankfurt (Germany) (AFP) - German insurance giant Allianz signalled Wednesday looming job cuts due to its adoption of artificial intelligence with a report saying up to 1,800 roles, mainly in call centres, could be axed. Allianz Partners, the company's subsidiary dealing principally with travel insurance, said it was "leveraging AI" to strengthen its position in the industry and improve its services. Such changes could however "impact positions which are heavily reliant on manual processes today," it said in a statement. A spokesperson declined to give further details. But a report in the Sueddeutsche Zeitung newspaper said the subsidiary planned to cut between 1,500 and 1,800 jobs in the next 12 to 18 months, citing company sources. That is up to eight percent of the 22,600 people employed by Allianz Partners, many of whom work in call centres. Jobs will be lost in Germany, France, Spain and Britain, the report said. Sources close to the company told AFP that discussions with staff representatives are still at an early stage. Allianz Partners receives about 200,000 calls worldwide every day, many relating to simple matters such as the status of a claim, according to the paper. In future many such enquiries will be dealt with by automated AI responses. The news comes with Allianz in good financial shape -- the group earlier this month reported a sharp jump in third quarter profits and raised its outlook for the year. Many companies have been announcing job cuts due to adoption of AI as the boom in the technology gathers pace.

Allianz to cut up to 1,800 jobs due to AI advances, says source

Between 1,500 and 1,800 jobs are set to be eliminated at Allianz Partners over the next 12 to 18 months, the source said. German insurance group Allianz plans to cut up to 1,800 jobs in its travel insurance division, mainly in call centres, as artificial intelligence increasingly replaces manual processes, a source familiar with the plans told Reuters on Wednesday. Between 1,500 and 1,800 jobs are set to be eliminated at Allianz Partners over the next 12 to 18 months, the source said. Allianz Partners employs 22,600 people, roughly 14,000 of whom handle customer inquiries and claims by phone. Industry publication Versicherungsmonitor first reported on the plans. The insurance group declined to comment specifically on the planned job reductions. Allianz Partners said in a statement that it is actively examining how technological change will affect all employees, which could "also impact roles that are currently heavily reliant on manual processes". A company spokesperson said that confidential talks with the works councils were currently taking place. (You can now subscribe to our Economic Times WhatsApp channel)

Allianz reportedly cutting up to 1,800 jobs in travel insurance as AI takes over By Investing.com

Investing.com -- German insurance giant Allianz plans to eliminate up to 1,800 positions in its travel insurance division as artificial intelligence increasingly replaces manual processes, according to a Reuters report on Wednesday. The job cuts at Allianz Partners will occur over the next 12 to 18 months, the report said. The reductions will primarily affect call center operations. Allianz Partners currently employs 22,600 people, with approximately 14,000 staff handling customer inquiries and claims by phone. The insurance publication Versicherungsmonitor was the first to report on the planned workforce reduction. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.