German insurer Ergo has announced a €130 million investment over the next five years to strengthen its generative AI (GenAI) infrastructure, with India playing a central role in this global technology strategy. The focus of this investment is purely technological, aimed at building GenAI capabilities, and does not include manpower or operational expenses.
“This is purely a technology investment—building the infrastructure for GenAI. It does not include operating costs or manpower,” said Mark Klein, Chief Digital Officer of Ergo Group. He added, “We are in the process of scaling AI across all key processes in multiple countries. The time for pilots is over. These systems now have to deliver measurable business value.”
Ergo has already implemented over 110 AI algorithms across various business functions and is now working on expanding these solutions across seven European markets. “Scaling is essential. AI does not come cheap. If you do not reuse assets and deploy solutions across markets, you will never arrive at a sustainable business case,” Klein noted.
India has become a vital part of Ergo’s global delivery model. The group’s technology centre in Mumbai, employing over 600 professionals, supports global operations. “India is becoming more and more important for us, not just as a growing market, but as a source of young, tech-savvy talent,” said Klein. He also praised the Indian digital infrastructure, saying it enables faster implementation of innovations compared to Europe.
Klein highlighted that HDFC ERGO, the company’s Indian joint venture, has been at the forefront of many tech initiatives. “In 2016, India was the first to implement a robot in our group. I took that back and by 2017 we had deployed robots across our operations. Today, we run over 500 bots globally,” he said.
Parthanil Ghosh, Director at HDFC ERGO, said the company is not just adopting global technologies but also leading innovation within the group. “We have completely overhauled our core systems using Duck Creek, a low-code platform. It allows us to launch products faster and meet regulatory needs better,” he said.
Ghosh added that generative AI is now live in operations such as underwriting and SME quote generation. “We built a platform called HEIQ, which reads unstructured broker data and generates quotes in under three minutes,” he said. The firm has also collaborated with IIT Bombay to create secure small language models using private foundational models, ensuring data privacy.
“These innovations are being closely watched by the group,” Klein added. “HDFC ERGO’s work is setting benchmarks not just for India, but for Ergo globally.”
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