Greenberg: AI will enable Chubb to reduce global staff
One of the world’s foremost insurance leaders has expressed deep concerns about the economy, citing uncertainties he sees ahead.
And in a March shareholders letter, he reiterated a planned reduction in staff by as much as 20 per cent, as first outlined in December.
Amid a glowing report of the 2025 performance of the largest US commercial insurer, Chubb chairman and chief executive Evan Greenberg, said that In some businesses, tech and AI will replace what humans do entirely, and in others it supports and makes them more productive.
He said: “We plan to reduce our global employee population significantly. There is a natural annual turnover rate of staff that substantially supports our ability to reduce headcount.
“While we will need far fewer colleagues in many areas, we require more in certain others. The stronger our competitive profile, the more we will grow, which means more employment over time with higher productivity.”
In December, he said the initiative to reduce staff by 20 per cent would progress through the next three years. Chubb has approximately 43,000 employees around the world, including a substantial underwriting operation in Bermuda.
Meanwhile, he addressed a growing concern about the state of the US economy during his annual letter to shareholders in March.
Optimistic about future prospects for growth, he said the outlook for this year is strong, given rapid increases in innovation and massive investments in AI and related infrastructure, which supports current and future growth in productivity.
Added to that, he said, is the stimulus to consumption and capital investment from the tax law enacted last summer, and federal deregulation efforts.
But he said: “Sitting alongside my optimism are numerous flashing warning lights. Likely, a good portion of the massive amounts of investment going into AI will generate low returns or won’t prove money good.
“Fundamentals contributing to inflationary pressure are real and growing, including tax cut stimulus, massive deficit spending, lagging tariff impacts, rising electricity demand, immigration-related labour shortages, and large increases in money supply that have contributed to inflation in all asset classes.
“We are running federal budget deficits near $2 trillion, 6 per cent of GDP, and total outstanding debt is four times what it was in 2007.
“That we are running a deficit during a period of strong economic growth is a self-inflicted problem. A reckoning is coming.
“Our inability — or unwillingness — to control deficits and inflation risks diminishing the confidence of those who buy Treasury debt and other dollar-based assets, which cheapens our currency and raises interest costs.
“Add a wide range of political and geopolitical uncertainties, and it isn’t hard to imagine a future event or series of events. We can’t predict the timing or the trigger, but the risk is real.”
He also warned of a growing affordability problem in the US, “which is also a political problem”.
Litigation is contributing to price increases in just about everything — transportation, food, construction, insurance and more.
He declared: “Our legal system is an unnecessary tax on society that saps households of an average $4,000 annually, more than 2 per cent of US GDP. The exploding frequency and cost of litigation for businesses of all kinds is raising liability insurance costs about 7 per cent to 9 per cent a year — multiples of the inflation rate.”
Responsible for dramatic growth in the company since taking over the reins 22 years ago of what was then the Ace Ltd franchise, his latest communication speaks of Chubb’s excellent year and record operating earnings, supported by strong underwriting and investment results, leading to double-digit growth in earnings per share.
The lengthy letter noted the year-on-year 22.7 per cent growth in tangible book value, and that it meant a 74 per cent growth over three years and a 385 per cent growth over 20 years.
But he said one of the world’s largest insurance companies was embracing the power of technology, AI, data and business process change, transforming so as to thrive in the future.
Mr Greenberg said: “Through our investments in data, AI, technology and process change, we are gaining greater insight, efficiency and speed in underwriting, claims, marketing, customer service and how we work, while reducing costs.
“These efforts are seriously intensifying and should significantly benefit our growth and improve margins in the future.”
The economic growth outlook for 2026 is strong, given rapid increases in innovation investments in AI and related infrastructure, which supports current and future growth in productivity.
• For more on the Chubb Letter to shareholders, see Related Media
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