AI automation could replace 25% of insurance jobs

The research also pointed to stronger pricing governance and cybersecurity as priorities for insurers.

Nearly half of institutions expect that automation will replace more than 25% of their company's workforce, following the news that Allianz Partners reportedly prepares to cut up to 1,800 jobs whilst expanding its use of artificial intelligence (AI).

Greater use of AI is helping insurers reduce costs, improve processing speed and address labour shortages, GlobalData said.

However, it also brings new challenges, including stronger regulatory oversight, greater scrutiny of fairness and transparency in pricing and claims decisions, increased cyber risks, and the need for robust governance of AI systems.

GlobalData said insurers that combine AI adoption with effective controls and employee upskilling are likely to improve risk selection, develop more personalised products and deliver faster customer service. 

Those that are slower to adopt the technology could face weaker customer retention and pressure on profit margins.

A GlobalData poll conducted in the fourth quarter of 2025 across Verdict and Business Trade Media International websites, which received more than 2,000 responses, further found that 25.2% believe more than half of jobs could eventually be replaced.

Despite these expectations, a separate GlobalData poll conducted during the same period found that 44.8% of more than 2,000 respondents were not concerned that automation would replace their own job.

The findings come as Bloomberg reported that Allianz Partners plans to reduce its workforce by 1,500 to 1,800 roles across several European countries. 

The reported move reflects a wider trend across the European insurance sector, where insurers are using AI to automate tasks such as claims processing, customer service, underwriting support, fraud detection and document handling.