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According to a recent investor presentation, Chubb plans to scale back its workforce by as much as 20% over the next few years as it implements more AI processes. With this, the insurer joins the growing ranks of companies scaling back their human teams in favor of automating certain insurance processes.
The presentation states that digital transformation will impact around 70% of the organization over the next three years, including Chubb’s sales and marketing, underwriting administration and support functions, claims and finance departments.
It’s vision for the next three to four years, Chubb says, includes around a 20% employee headcount reduction, as well as what it calls “radical automation goals,” which includes:
- 85% of major underwriting and claims processes automated;
- 85% of global GWP operating as digital business or significantly digitally enabled; and
- Data, AI and process automation will be the driving force to achieve growth at low marginal cost.
Chubb’s report claims this shift will lead to better, more informed underwriting and claims decisions, create a competitive advantage with curated proprietary data, allow for real-time intelligence and help the insurer attract and retain the “highest quality, ambitious talent,” which it believes will optimize outcomes and help it remain a market leader while growing profits.
According to Chubb’s website, the company currently employs around 43,000 people worldwide, which means these cuts would affect approximately 8,600 workers.
This follows news earlier this month that fellow insurer Allianz allegedly plans to eliminate around 1,800 positions from its travel insurance division over the next 18 months due to advancements in AI.
The growing prominence of these decisions among major insurance companies is likely a sign of what is to come in 2026 as AI processes are refined.
Results of a survey from McKinsey, released in November, show that while most companies aren’t heavily relying on AI, around 88% say they use AI to complete at least one job function. Around 79% report they use Generative AI for at least one job function.
McKinsey’s survey found that, overall, around 32% of businesses are experimenting with early AI testing, 30% are pivoting to implement AI for a first-use case for their business, 31% say they are scaling the adoption and deployment of AI across their organization, and around 7% say they have fully scaled and AI is integrated across their organization.
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