Key facts
- Allianz Partners plans to cut between 1,500 and 1,800 jobs in the next 12 to 18 months.
- The subsidiary is using AI to automate manual processes and enhance services.
- Many of the affected positions are in call centers.
- The job cuts will impact Germany, France, Spain, and Britain.
- Allianz recently reported strong third-quarter profits and raised its annual outlook.
Allianz Partners, the travel insurance division of Allianz, is planning to reduce its workforce by 1,500 to 1,800 employees over the next 12 to 18 months, according to reports citing company sources. This move is driven by the company's strategy to leverage artificial intelligence (AI) for automating manual processes and enhancing its services, particularly in customer support functions like call centers.
The planned cuts, which could represent up to 8% of Allianz Partners' global workforce of 22,600, will affect employees in Germany, France, Spain, and Britain. The company receives approximately 200,000 calls daily, many of which involve routine inquiries that AI is expected to handle in the future.
This development occurs as Allianz, the parent company, has reported a significant increase in its third-quarter profits and has raised its financial outlook for the year. The trend of companies announcing job cuts due to AI adoption is accelerating across various sectors as the technology's capabilities expand.
Meanwhile, research from Evident Insights indicates that insurance giants like Axa and Allianz are leading in AI adoption in Europe, driven by strong engineering cultures and investments in AI talent. These companies are building AI teams and experimenting with AI use cases to improve efficiency, although a significant gap remains between AI hype and demonstrable ROI across the industry. Only a few insurers have publicly disclosed monetary returns from their AI initiatives, with cost savings being the primary benefit observed so far.