A not-so-quiet shift is underway inside one of the world’s largest insurance companies. And it has real consequences for anyone who owns, drives, or fixes cars. Chubb disclosed this week that it plans to reduce its workforce by about 20% over the next three to four years as it hands much of its underwriting and claims work to artificial intelligence.

The plan was laid out in an investor presentation reviewed by Repairer Driven News and backed by company reporting.

Chubb explained that “digital transformation” will touch roughly 70% of its organization within 3 years

That includes sales and marketing, underwriting support, claims handling, finance, and other back-office functions.

The goal is aggressive: about 85% of major underwriting and claims processes are expected to become automated, with most global premium volume operating as either fully digital or “heavily digitally enabled.”

For Chubb, it’s all about the math

The company reported that data, AI, and process automation can drive growth while keeping marginal costs low.

On page 9 of Chubb’s Limited Investor Presentation 2025, executives project long-term expense savings equal to about 1.5 points on the combined ratio once the transition reaches full stride.

In plain English, it means Chubb expects AI to cut costs enough that, for every $100 it collects in premiums, it will spend about $1.50 less on claims and operating expenses.

That may sound small, but across billions of dollars in insurance business, it adds up to hundreds of millions in savings. In insurance math, that’s real money, not couch-cushion change.

Chubb hasn’t released an exact headcount number

But based on publicly reported workforce figures of around 40,000 to 43,000 employees globally, a 20% cut would mean roughly 8,000 to 8,600 jobs.

The insurer said it’s not starting from scratch

Chubb reported major investments in data centers, large-scale data ingestion systems, and widespread use of AI algorithms and large language models.

The company currently employs more than 3,500 engineers, with engineering hubs spread across Mexico, Greece, India, and Colombia.

This shift is not unique to Chubb

According to the National Association of Insurance Commissioners, 88% of 193 auto insurers surveyed said they already use or plan to explore AI in their operations.

In 2023, the NAIC approved a model bulletin outlining guardrails for AI use, including controls to prevent inaccuracies, bias, and data vulnerabilities, and reminders that existing unfair trade practice laws still apply.

Regulators are paying attention

Florida lawmakers recently filed legislation that would require mandatory human review of insurance claim denials involving AI systems.

In any case, if you have Chubb, get ready for fewer human interactions.