Allianz Partners reportedly plans to cut up to 1,800 jobs while expanding its use of artificial intelligence, a move that reflects how automation is reshaping the European insurance sector. Nearly half of insurance institutions expect AI to replace more than 25% of their workforce, a GlobalData poll found, as insurers turn to the technology to reduce costs, speed up processing, and address labour shortages.
AI adoption accelerates in insurance
The push for automation is driven by clear operational benefits. Insurers are using AI for insurance tasks such as claims processing, customer service, underwriting support, and fraud detection. GlobalData said these applications help companies reduce costs, improve processing speed, and respond to persistent labour shortages.
Governance and cybersecurity risks intensify
Faster, cheaper operations come with new demands. Regulators are applying stronger oversight and greater scrutiny of fairness and transparency in pricing and claims decisions. Cyber risks are rising, and companies need strong governance of AI systems to avoid bias and security breaches. GlobalData said insurers that combine AI adoption with effective controls and employee upskilling are likely to see better risk selection, more personalised products, and faster customer service.
Workers fear job losses but many feel secure
The GlobalData poll, conducted in Q4 2025 across Verdict and Business Trade Media International websites, collected more than 2,000 responses. It found that 25.2% of respondents believe more than half of jobs could eventually be replaced by automation. Yet a separate poll during the same period showed that 44.8% were not concerned that automation would replace their own job. The split reflects a tension between broad industry trends and individual confidence.
Slow adopters face competitive pressure
GlobalData warned that insurers slower to adopt AI could face weaker customer retention and pressure on profit margins. The report highlighted that the European insurance sector is using AI to automate document handling, underwriting, and other core functions. The Allianz Partners job cuts, reported by Bloomberg, span 1,500 to 1,800 roles and are part of this wider trend.
Why this matters for insurance professionals
The data shows that automation is not a distant threat but a present reshaping of roles. For insurance professionals, the immediate priority is to upskill in AI governance, data analysis, and the oversight of automated systems. Those who can bridge the gap between technology and compliance will be better positioned as companies shift from manual processing to AI-driven workflows. The risk is not just job loss but being left behind in a market where rivals are already using AI to cut costs and win customers.
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