Full Capacity: Rise of the machines: AI transition and job losses

November 29 2025 by

Welcome to Full Capacity, a weekly briefing on all the most important developments of the past week with a personal take on the news from our editor-in-chief, Mithun Varkey, delivered to your inbox every Saturday.  

HK Fire. In one of the worst tragedies to hit Hong Kong in recent years, at least 128 people were killed and several injured after a fire engulfed a public housing complex in Hong Kong’s Tai Po neighbourhood. 

Hong Kong-based China Taiping is the insurer on all the property all risks, contractors’ all-risk policy (CAR) and third-party liability (TPL) covers, as InsuranceAsia News first reported. 

The insurance claim from the Wang Fuk Court housing estate is likely to be over HK$1.5 billion (US$200 million) under the master property policy with additional claims likely under the CAR, including TPL and employees’ compensation covers. 

Nat cat brief. Australian insurers have reported more than 33,000 claims following severe hailstorms that impacted southeast Queensland and northern New South Wales on Sunday and Monday. 

Suncorp said its net cost for the supercell thunderstorms is expected to be AU$350 million (US$228.5 million), which is the maximum event retention of main catastrophe reinsurance cover. 

Australia push. Munich Re Specialty has announced its expansion into Australia, which will be led by former Lloyd’s regional director for Asia Pacific, the Middle East and Africa Chris Mackinnon. 

IAN Exclusive. Canopius’ Asia Pacific chief underwriting officer Yann Marmonier has left the Lloyd’s specialty (re)insurer, InsuranceAsia News first reported.  

Gift City. Korean Re has received regulatory approval to establish a new branch in Gujarat International Finance Tech-City (Gift City). The South Korean reinsurer plans to officially commence operations in April. 

PE funding. Thai digital insurer Roojai said it is eyeing further M&A opportunities after attracting a fresh US$60 million investment in a series C fundraising led by private equity firms Apis Partners and Asia Partners. 

P&I merger. The UK P&I Club and the TT Club have announced that they are currently engaged in discussions regarding a potential merger.  

The AI dilemma

In one of the first instances of AI-driven job losses in the insurance sector, Bloomberg reported this week that Allianz plans to cut between 1,500 to 1,800 jobs at its Allianz Partners subsidiary as part of its transition to AI.  

It is part of a broader trend among major companies increasingly adopting AI to streamline operations and reduce staffing costs. And the conversation around AI and jobs has now moved on from theoretical to a cold splash of reality. 

Executives now tout the gains in efficiency from AI in earnings reports and memos, framing workforce reductions as a necessary adaptation to an economy increasingly driven by technology. 

A US study noted that AI is responsible for about 50,000 job cuts in the country so far this year, with a sharp rise in October.  

A study from the Massachusetts Institute of Technology (MIT) suggested that up to 11.7% of the US labour market could be replaced by AI, translating to a staggering US$1.2 trillion in lost wages across critical sectors like finance and healthcare. 

The financial sector is no exception. Bloomberg Intelligence predicts that global banks may cut up to 200,000 jobs in the next three to five years as AI infiltrates processes traditionally handled by humans.  

It’s clear that the stakes are high and the implications could be staggering for job markets.  

However, it is not quite doomsday yet and a healthy dose of scepticism is warranted. 

There is some talk of “AI washing”, which is a word for scapegoating AI to effect layoffs that were already in the pipeline and not due to efficiency gains. 

By pinning the cuts on an unstoppable force of technology, companies sidestep blame and frame themselves as pragmatic pioneers. 

AI washing or efficiency gains, there is no denying that the underlying trend is terrifyingly real. 

There is, as always, a glimmer of hope. A McKinsey analysis offers a crucial insight: over 70% of the skills employers want today are used in both automatable and non-automatable work.  

This suggests that as adoption advances, most skills will remain relevant, but how and where they are used will evolve. So, human skills aren’t becoming obsolete, but their application is.  

The question is no longer what you know, but how you can apply it when the routine tasks are being systematically ceded to machines. 

People moves

Howden has appointed Marsh’s Alaric Lee as chief commercial officer for Asia. 

Loss adjuster Sedgwick has promoted Aruna Chandrapalan to CEO of Singapore. 

Meanwhile, vrs Adjusters has appointed former Swiss Re executive Sydney Soo as APAC director. 

Generali GC&C’s head of business development Joshua Lynch has announced his departure from the insurer. 

Do check out our weekly people move round-up to stay up to speed on the most important appointments in the region.   

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