Allianz SE is in talks about potential job cuts at its assistance and travel insurance subsidiary Allianz Partners as it seeks to use more artifical intelligence.
The cuts will likely affect call center positions, the person said, declining to be identified because the information is private. German newspaper Süddeutsche Zeitung reported earlier that Allianz Partners wants to cut between 1,500 and 1,800 roles over the next 12 to 18 months, citing sources it didn’t identify.
A spokesperson for Allianz Partners declined to comment on job cuts. The firm said in a written statement that it is assessing how to leverage AI in the coming years. “We anticipate these changes will create opportunities for learning, growth, and new roles within the company, but may also impact positions which are heavily reliant on manual processes today,” it added.
Companies across industries and geographic regions are increasingly using AI to speed up services and cut costs. Deutsche Lufthansa AG said in September that it plans to eliminate 4,000 administrative positions by the end of the decade, citing “the increased use of artificial intelligence” among the reasons. At Dutch lender ING Groep NV, almost 1,000 positions are at risk from “digitalization, AI, and evolving customer needs,” the bank has said.
Allianz Partners has about 22,600 employees, according to its website.
Commercial property premiums decreased for the first time in eight years, down an average of 0.2%. The reason cited most by respondents was an influx of additional capacity, outweighing demand. New carriers and managing general agents have entered the market as well as returning carriers that left during hard-market conditions. Also, the commercial property reinsurance market has improved, which has trickled down as a benefit to insureds.
Even the rate of premiums increases for umbrella coverage decreased in Q3, CIAB said the line had seen average increases of 11.5% in Q2. In Q3, the increase was an average of 5.5%. “It’s not yet clear what may be influencing this abrupt reversal in the magnitude of average premium increases for the line,” CIAB added.