January 2026 — Artificial intelligence is rapidly becoming a defining force in the global insurance industry, and Travelers Companies Inc. is emerging as one of the most prominent examples of how advanced technology can transform large-scale operations. In mid-January, the US-based insurance giant announced a major expansion of its AI capabilities, equipping more than 10,000 engineers and data scientists with AI assistants. Within weeks, company leadership made it clear that while AI is a powerful tool, human expertise remains the true engine of sustainable growth.
The announcement came alongside growing evidence that automation is reshaping Travelers’ workforce—particularly within its claims call centres—where AI-driven efficiency gains have reduced staffing requirements while improving service delivery and profitability.
AI Becomes a Core Part of Daily Work at Travelers
According to Travelers’ Chief Executive Officer Alan Schnitzer, artificial intelligence is no longer experimental within the company. More than 20,000 employees now use AI tools regularly, embedding automation and machine intelligence into everyday workflows across claims, underwriting, customer service, and data analysis.
Schnitzer emphasized that AI adoption is not about replacing institutional knowledge, but about enhancing it. “Our competitive advantage is not AI alone,” he said, noting that the company’s long-term success depends on blending deep industry expertise with advanced technology.
This philosophy underpins Travelers’ broader transformation strategy, which positions AI as an accelerator of human decision-making rather than a substitute for it.
Technology and Innovation Drive Long-Term Profit Growth
Travelers’ financial performance over the past decade highlights the impact of sustained investment in technology. The company has increased the total value of insurance policies sold by nearly 7% annually on average between 2016 and 2025, while simultaneously improving operational efficiency.
One of the most striking indicators is Travelers’ underlying combined ratio, which improved by almost eight points to 83.9, reflecting stronger underwriting discipline and lower expense ratios.
Despite increasing technology spending, profitability has continued to rise. Schnitzer noted that Travelers achieved a three-point (approximately 10%) improvement in its expense ratio, even while funding large-scale innovation initiatives.
“Over the decade, we built a competitive advantage around innovation as a skill set,” Schnitzer said. “Now we’re applying that foundation to the next phase—what we call Innovation 2.0—powered by AI and, eventually, quantum computing.”
From Innovation 1.0 to Innovation 2.0
Travelers describes its transformation journey in two phases. Innovation 1.0 focused on building the digital and analytical foundation necessary for modern insurance operations—data infrastructure, advanced analytics, automation, and process redesign.
The company is now transitioning into Innovation 2.0, where AI is the central driver of value creation. This phase emphasizes generative AI, agentic AI systems, advanced predictive models, and intelligent automation that can operate at scale across complex insurance workflows.
Innovation 2.0 is not confined to one department. Instead, it spans claims processing, underwriting, pricing, customer engagement, risk assessment, and internal productivity.
Automation Leads to Significant Call Centre Reductions
One of the most visible impacts of AI adoption at Travelers has been within its claims call centres. Automation has reduced the need for manual intervention in routine cases, leading to a substantial decline in call centre staffing.
Schnitzer revealed that Travelers’ claims call centre workforce has fallen by roughly one-third, with plans underway to consolidate four claims call centres into two. These changes reflect a broader shift toward digital and automated claims handling.
The efficiency gains have translated directly into lower loss adjustment expenses and an improved loss ratio. Advanced analytics and automation now enable Travelers to process claims faster, more accurately, and at a lower cost.
Straight-Through Processing Becomes the Norm
A growing proportion of claims at Travelers are now handled without human involvement from start to finish. According to Schnitzer, more than 50% of all claims are eligible for straight-through processing, with customers choosing this option in approximately two-thirds of cases.
An additional 15% of claims are processed using advanced digital tools, where AI supports human adjusters by summarizing information, identifying anomalies, and recommending next steps.
“All of these percentages are growing,” Schnitzer said, pointing to continued momentum in automation adoption.
Generative AI Voice Agents Transform Customer Calls
Despite the rise of digital claims channels, many customers still prefer to speak with a representative when reporting or discussing a claim. To address this preference while maintaining efficiency, Travelers has deployed a generative AI-powered voice agent that handles initial customer calls.
This natural-language AI system can understand customer intent, gather relevant information, and route cases appropriately—reducing wait times and improving first-call resolution.
Early results have exceeded expectations. “Customer adoption is stronger than we anticipated,” Schnitzer said, highlighting the voice agent’s role in balancing automation with customer experience.
AI Enhances Underwriting Quality and Speed
The benefits of AI at Travelers extend far beyond claims operations. Underwriting—one of the most complex and data-intensive functions in insurance—has seen significant improvements in speed, accuracy, and pricing sophistication.
Greg Toczydlowski, Executive Vice President and President of Business Insurance at Travelers, explained that generative AI agents are now used to efficiently mine vast amounts of internal and external data.
These tools help underwriters better understand risk characteristics, synthesize information, and make more informed decisions. As a result, underwriting processes are faster, and pricing is more precisely segmented.
“Our commercial underwriters are performing at a very high level,” Toczydlowski said. “Advanced tools are helping them evaluate risks more effectively, refine pricing, and summarize historical claims data in ways that streamline the entire workflow.”
AI in Personal Insurance: Smarter Renewals, Faster Decisions
Artificial intelligence is also playing a critical role in Travelers’ personal insurance segment. Michael Klein, Executive Vice President and President of Personal Insurance, highlighted how AI has transformed renewal underwriting.
The process begins with a proprietary AI-enabled predictive model that scores every account in the property portfolio based on the probability of loss. High-risk accounts are flagged for underwriter review, ensuring that human attention is focused where it matters most.
From there, a generative AI platform consolidates data from multiple sources into concise, actionable summaries for underwriters. This reduces manual review time and improves decision quality.
The impact has been measurable. Klein reported a 30% reduction in average handle times, allowing underwriters to concentrate on decisions that most directly influence profitability.
“The result is that our teams work more efficiently while improving outcomes,” Klein said.
Specialty Insurance Sees Dramatic Time Savings
In Travelers’ bond and specialty insurance segment, AI has delivered equally impressive results. Jeffrey Klenk, President of Bond & Specialty Insurance, noted that AI tools have reduced submission intake times from hours to just minutes.
Automation has also been introduced into the renewal process, improving consistency and speed while freeing employees to focus on higher-value tasks such as relationship management and complex risk evaluation.
Innovation 2.0 and the Future of Insurance Jobs
While AI has already reduced call centre headcounts, Travelers’ leadership has avoided predicting further job cuts. Instead, the focus remains on productivity gains and workforce transformation.
“What we’re seeing is higher output per employee,” Schnitzer said. “Thanks to productivity and efficiency initiatives, we expect that trend to continue.”
Rather than eliminating roles wholesale, AI is reshaping them—shifting employees toward analytical, strategic, and customer-focused responsibilities.
Human Expertise Remains Central
Schnitzer consistently emphasized that AI works best when paired with human judgment. Advanced models can process massive volumes of structured and unstructured data, but domain expertise remains essential for interpreting results and making nuanced decisions.
“AI amplifies our existing strengths,” he said. Travelers continues to invest heavily in AI, analytics, and other advanced technologies, with dozens of scaled generative AI tools already in production.
Millions of transactions are now automated, and agentic AI systems—capable of executing tasks autonomously within defined boundaries—are already embedded in daily operations.
A Broader Impact on the Insurance Industry
Travelers’ experience reflects a broader transformation underway across the property and casualty insurance sector. Advanced AI tools are increasingly capable of managing complex stakeholder interactions, data-heavy workflows, and intricate regulatory requirements.
The company expects AI and automation to accelerate innovation across product development, underwriting, claims handling, customer service, and distribution.
According to Schnitzer, these technologies will enable insurers to deliver new capabilities faster and more cost-effectively, reshaping competitive dynamics across the industry.
Conclusion: AI as a Strategic Advantage, Not a Substitute
Travelers’ AI journey illustrates how technology can drive efficiency, profitability, and customer satisfaction when deployed strategically. While automation has reduced certain roles—particularly in call centres—the company’s leadership views AI primarily as a force multiplier for human talent.
By combining deep insurance expertise with cutting-edge AI, Travelers is positioning itself for long-term growth in an increasingly digital and data-driven industry.
As Innovation 2.0 unfolds, the company’s approach may serve as a blueprint for insurers worldwide seeking to harness AI without losing the human judgment that underpins trust, accuracy, and sustainable success.