Munich Re Unit to Cut 1,000 Positions as AI Takes Over Jobs

Why It Matters

The cuts and accompanying retraining program illustrate how insurers are leveraging AI to cut expenses while preserving talent, reshaping the competitive landscape of the European insurance market.

Key Takeaways

• Ergo cuts 1,000 German jobs by 2030.
• AI automates telephony and claims processing tasks.
• Targeting €600 million annual savings by 2030.
• Up to 500 employees will receive retraining.
• No forced redundancies; cuts spread over five years.

Pulse Analysis

Munich Re’s primary insurer, Ergo, announced a plan to eliminate roughly 1,000 positions in Germany, a move driven by the expanding role of artificial intelligence in routine operations. By automating telephony and claims‑processing functions, the unit expects to streamline workflows and curb inflation‑linked expense growth. The reduction will be phased over five years, concluding in 2030, and aligns with the group’s broader objective to generate €600 million in annual savings by that date. This reflects a growing consensus that AI can deliver both efficiency and scale in the property‑casualty sector.

The job cuts are coupled with a proactive reskilling program that targets up to 500 employees for redeployment into growth areas such as retirement planning and digital services. By offering internal mobility rather than forced layoffs, Ergo aims to preserve talent while reshaping its workforce for higher‑value activities. This approach mirrors similar initiatives at ING and Allianz, where AI‑enabled digitalization is prompting large insurers to rethink staffing models. The emphasis on retraining underscores the industry’s recognition that human expertise remains essential for complex underwriting and client advisory roles.

From a market perspective, the €600 million cost‑saving target positions Munich Re to maintain profitability amid rising claims volatility and regulatory pressure. Competitors that lag in AI integration may face higher operating costs and reduced pricing power. However, rapid automation also raises questions about data governance, model transparency, and potential regulatory scrutiny, especially in Europe’s stringent insurance framework. As AI continues to reshape risk assessment and claims handling, insurers that balance technological adoption with robust talent strategies are likely to secure a competitive edge in the evolving landscape.

Munich Re Unit to Cut 1,000 Positions as AI Takes Over Jobs

By Stephan Kahl · February 17, 2026

Munich Re’s primary insurance unit Ergo aims to cut about 1,000 positions in Germany, partly as a result of its increased use of artificial intelligence.

The cuts affect simple and repetitive tasks in telephony and claims processing, a spokesman said on Tuesday. They will take place over five years through the end of 2030, with Ergo saying there will be no forced redundancies during this time.

Related: Why 2026 Is The Tipping Point for The Evolving Role of AI in Law and Claims

Companies in the finance industry are increasingly using AI to speed up services and cut costs. Late last year, ING Groep NV said almost 1,000 positions are at risk in response to “digitalization, AI, and evolving customer needs.” A unit of German insurer Allianz SE said it was assessing how to leverage AI in the coming years, following reports on job cuts.

Munich Re said in December it plans to reduce complexity and gradually increase annual cost savings to approximately €600 million (≈ $709 million) by 2030 to soften inflation‑driven cost increases.

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Apart from the job cuts, Ergo also aims to retrain as many as 500 employees over two years with the goal to give them other positions within the company, especially in growth areas like retirement planning.

Munich Re employs about 15,000 people in Germany. Handelsblatt first reported the job cuts, citing an interview with Ergo’s head of HR.

Copyright 2026 Bloomberg.