Half of Insurers Expect AI to Replace 25% of Workforce

Nearly half of insurance institutions anticipate that automation will displace more than a quarter of their workforce, according to new research from GlobalData. The findings arrive as Allianz Partners reportedly prepares to eliminate between 1,500 and 1,800 positions across multiple European countries while simultaneously expanding its artificial intelligence capabilities.

The research, based on a GlobalData poll conducted in the fourth quarter of 2025 that gathered more than 2,000 responses across Verdict and Business Trade Media International websites, reveals the scale of transformation underway in the insurance sector. A quarter of respondents believe more than half of all insurance jobs could eventually face automation.

Why it matters

Insurance companies stand at a critical juncture where AI adoption will likely determine competitive positioning. Firms that successfully integrate automation while maintaining strong governance and investing in workforce development can expect improved risk selection, more personalized products, and faster customer service. Those that lag risk losing customers and seeing profit margins compressed. The technology shift also introduces new regulatory, cybersecurity, and fairness challenges that require immediate attention from leadership teams.

The automation advantage

Insurers are deploying AI across core functions including claims processing, customer service operations, underwriting support, fraud detection, and document handling. According to GlobalData, these implementations are delivering tangible benefits: reduced operational costs, accelerated processing speeds, and solutions to persistent labor shortages.

The efficiency gains are driving a broader trend across European insurance markets, where companies are restructuring their workforces to align with automated capabilities. Bloomberg reported that Allianz Partners' planned reductions reflect this wider sectoral shift.

New risks emerge

The rapid adoption of AI technologies introduces challenges that extend beyond workforce management. GlobalData's research identifies several critical areas requiring attention: stronger regulatory oversight, heightened scrutiny of fairness and transparency in pricing and claims decisions, elevated cyber risks, and the necessity for robust AI governance frameworks.

Insurers must balance automation's efficiency benefits against these emerging risks. Companies that fail to establish effective controls alongside their AI deployments may face regulatory penalties, reputational damage, or security breaches that offset cost savings.

Workers remain confident

Despite widespread expectations of job displacement, individual workers appear less concerned about their own positions. A separate GlobalData poll from the same period found that 44.8% of more than 2,000 respondents were not worried that automation would replace their specific job.

This disconnect between institutional forecasts and personal confidence may reflect optimism about reskilling opportunities, belief in the irreplaceability of certain roles, or incomplete understanding of automation's scope.

The path forward

GlobalData emphasizes that insurers combining AI adoption with effective controls and employee upskilling programs are positioned to gain competitive advantages. The research suggests that success requires simultaneous investment in technology and people, rather than viewing automation purely as a cost-reduction exercise.

These findings were first reported by Insurance Asia, drawing on GlobalData research and Bloomberg reporting on Allianz Partners' workforce plans.