Ergo, the primary insurance arm of Munich Re, is preparing to replace approximately 1,000 positions in its German operations with the help of AI over the next five years.
The company has said it does not plan any layoffs or involuntary separations as part of the process.
The insurer expects roughly 200 employees per year to leave through what it described as "natural fluctuations," including retirements, demographic changes, and workers pursuing opportunities elsewhere. Ergo currently employs about 15,000 people in Germany.
To manage the transition, the company plans to open a reskilling academy in Germany during the first half of 2026. The academy will focus on retraining employees whose roles are expected to be affected by AI, particularly in call center, claims handling, and communications functions.
Ergo aims to make 500 positions available through the reskilling academy over the next two years. A spokesperson said the company is taking a "socially responsible" approach to creating efficiencies, with no compulsory redundancies or site closures planned.
The workforce changes form part of a broader strategic program that Ergo has set through 2030, built around three objectives: positioning itself as a technology-driven company through systematic AI deployment, driving profitability and operational efficiencies, and expanding its international business with a focus on Europe, Asia, and the United States.
The plan aligns with Munich Re's group-level Ambition 2030 strategy, announced in December, which targets annual cost savings of around €600 million by the end of the decade while expanding the use of artificial intelligence across underwriting, pricing, and investment management.
Under those targets, Ergo's combined ratio is to improve to 86–88% by 2030, down from its 2025 target of 90%.
Munich Re has also developed a proprietary AI underwriting tool, which it says has been implemented at 50 customers worldwide. Research from Accenture has estimated that automating underwriting processes could unlock efficiency gains of up to US$160 billion by 2027.
Ergo's US expansion plans are already underway. Munich Re's US$2.6 billion acquisition of Next Insurance, a US-based digital insurer announced last year, is part of that strategy.
Ergo's approach contrasts with the more aggressive timelines set by other major carriers. Chubb, which employs about 43,000 people globally, has said it plans to trim its workforce by as much as 20% over the next three to four years as part of a groupwide digital transformation, targeting automation of 85% of its major underwriting and claims processes.
Allianz, meanwhile, has moved to reduce its workforce by between 1,500 and 1,800 positions within its travel insurance operations over the next 12 to 18 months, with the cuts predominantly affecting call center operations.
The broader industry faces its own demographic pressure. Consulting firm Wipfli, citing US Bureau of Labor Statistics data, has noted that roughly 50% of the current insurance workforce will have retired in little more than a decade, creating more than 400,000 open positions.
McKinsey research has found that domain-level AI integration has delivered a 10–15% increase in premium growth and a 20–40% reduction in customer onboarding costs.
