Allianz, one of the world’s biggest insurance companies, plans to cut between 1,500 and 1,800 jobs in its travel insurance division over the next year to year and a half. Most of these cuts will hit call center staff who handle customer inquiries and claims over the phone.
The move comes as Allianz Partners, the travel insurance branch, embraces new technology to make its processes more efficient. Right now, Allianz Partners employs about 22,600 people worldwide, with around 14,000 working in roles that involve answering calls and processing claims. The planned cuts represent roughly 6.6% to 8% of their total workforce.
A spokesperson from the company said they are in confidential talks with employee representatives about the changes. The company is looking closely at how technology, especially automation, will impact jobs that rely heavily on manual work.
More broadly, the insurance sector is seeing big shifts as tools like artificial intelligence become more common. About 80% of American workers have at least some daily tasks now influenced by AI, with insurance and financial services being among the industries most affected.
While many worry about job losses, emerging roles are gaining attention. New jobs focused on AI ethics, governance, and monitoring algorithms are opening up. Groups like the National Association of Insurance Commissioners are also forming teams to ensure AI is used responsibly in areas like pricing and claims.
Meanwhile, major U.S. insurers like AIG, Great American, and Berkley are asking regulators for permission to limit their liability for any claims related to errors from AI systems. They are concerned about the financial risks tied to this new technology.
As AI continues to change the way insurance companies operate, Allianz’s job reductions highlight the ongoing shift in how work gets done. At the same time, the industry is exploring ways to introduce new roles and manage risks that come with this technology.