"Leading German insurance firm Ergo will cut 1,000 jobs by 2030 as it makes greater use of artificial intelligence, company officials said this week. The Munich Re subsidiary, which currently employs 15,000 people, will aim to eliminate 200 posts a year "with the reinforced use of AI", Ergo human resources director Lena Lindemann told Handelsblatt business daily. She said the job cuts would be made at call centres and in the handling of claims."
"People who leave posts would not be replaced and there would be some early retirements. About 500 Ergo staff are to be retrained. A company spokesman, Yannick Tetzlaff, told AFP that without the retraining, the number of job cuts would have been higher. AI has already made deep inroads into Germany's insurance sector. Allianz Partners announced in November that it would cut 1,800 jobs, about eight percent of its staff, through increased automation."
Ergo will cut 1,000 jobs by 2030 as it increases use of artificial intelligence. The Munich Re subsidiary currently employs 15,000 people and will aim to eliminate about 200 posts annually. Cuts will focus on call centres and claims handling, with departing staff not replaced and some early retirements. About 500 employees will be retrained, and company spokespeople indicated retraining limited the scale of reductions. AI has already penetrated Germany's insurance sector, and Allianz Partners recently announced cuts of 1,800 jobs, about eight percent of staff, through increased automation. The firm expects job elimination to occur through automation and restructuring.
Read at The Local Germany
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