Planned reductions signal how rapidly AI is reshaping call center operations

With AI continuing to reshape processes across businesses worldwide, insurance giant Allianz is planning to reduce its workforce by between 1,500 and 1,800 positions within its travel insurance operations over the next 12 to 18 months, according to sources familiar with the plans. The reductions will predominantly affect call center operations across the division.

Allianz Partners, the travel insurance unit undertaking the restructuring, currently employs 22,600 people across its global operations, with approximately 14,000 engaged in handling customer inquiries and claims processing via telephone.

The company said that it is “actively examining how technological change will affect all employees,” noting that such changes could “also impact roles that are currently heavily reliant on manual processes.”

The planned reductions represent approximately 6.6% to 8% of Allianz Partners’ total workforce. A company spokesperson indicated that the firm is engaged in “confidential talks with the works councils” regarding the restructuring.

Broader automation trends continue to reshape the insurance workforce as adoption continues to rise. Approximately 80% of US workers have at least 10% of their daily tasks exposed to large language models, with insurance and financial services ranking among the most vulnerable sectors to such technological displacement.

The scale of technological transition is also drumming up fears for the wider workforce. The World Economic Forum forecasts that artificial intelligence could displace 92 million jobs by 2030 while creating 170 million new positions, though a Reuters and Ipsos survey revealed that 71% of Americans fear AI will cause permanent job loss, reflecting public uncertainty about workforce transitions.

There are, however, new opportunities presenting itself in the AI wave. New occupational roles are emerging as insurers manage AI adoption, including data ethics officers, AI governance specialists, and algorithm auditors. The National Association of Insurance Commissioners has formed a working group on the ethical use of AI, examining how insurers apply algorithms in pricing and claims handling.

Elsewhere, three major US insurers – AIG, Great American, and WR Berkley – have submitted requests for regulatory approval to limit their liability for claims arising from artificial intelligence systems, citing concerns over potential multibillion-dollar claims tied to AI-related errors or harm.

Insurance Business

Article link