TAL expands Microsoft deal in biggest tech pact yet

TAL has expanded its partnership with Microsoft under a new five-year technology agreement, which the insurer described as the largest tech deal in its history.

The agreement centres on broader use of Microsoft's cloud and artificial intelligence services, alongside investment in engineering and workforce training. Microsoft will help TAL consolidate its data on Azure and develop a suite of AI tools for internal use.

The deal builds on an existing relationship that has already introduced AI into TAL's claims, human resources and customer service operations. The tools are designed to reduce administrative work and speed up access to internal information.

Hinesh Chauhan, TAL's chief information officer, said the investment in technology and skills would help staff meet the changing needs of Australians.

"We're investing in the tech and in building skills that will help our people respond to the next generation needs of Australians," Chauhan said.

One existing AI tool is a chat-based knowledge assistant for claims staff. It has answered more than 37,000 claims-related questions using TAL's knowledge base, cutting the average time spent on each query by seven minutes and earning 93% positive user feedback.

Initially deployed for claims consultants, the tool has since been extended to HR and customer service teams, signalling an effort to move beyond isolated pilots and embed AI across a wider range of functions.

A second tool, integrated with TAL's core claims platform, transcribes and summarises claims calls in real time. Since launch, it has processed more than 120,000 claims-related calls, allowing consultants to focus on customer conversations and review notes afterwards.

Claims focus

Georgina Croft, TAL's chief claims officer, said AI is supporting staff in sensitive customer interactions.

"Life insurance is deeply human. Customers contact us during some of the most challenging times of their lives, as they navigate illness, injury or loss," Croft said.

"Our people are shaping the AI tools that enable them to be fully present with customers and deliver a compassionate high-quality experience," she added.

The next phase of TAL's work with Microsoft will also include programmes to raise AI literacy across the organisation. The insurer is aiming to address uneven familiarity with AI tools among staff while setting guardrails for the safe use of data and artificial intelligence.

"AI is intuitive for some, newer for others and we're focused on closing that gap, giving employees an edge in their careers and ensuring they're set-up to safely use data and AI to help customers and innovate for the future," Chauhan said.

He said the partnership would also bring TAL engineers together with Microsoft engineers and scientists on joint development work.

"This is about building experiences customers love, and that our people love to build. Our expanded collaboration will also see our engineers working with Microsoft's engineers and scientists to develop solutions together to deliver impact faster," Chauhan said.

Broader trend

The agreement reflects a broader push by insurers and banks to combine cloud migration with AI deployment, often starting with internal workflows such as customer support, document handling and staff knowledge tools. At TAL, the focus appears to be on claims operations, where call handling and rapid access to policy information can shape both staff productivity and customer experience.

For Microsoft, the deal expands its footprint in financial services across Australia and New Zealand, where large institutions are moving more data and workloads onto major cloud platforms while testing generative AI tools in controlled settings.

Duncan Taylor, general manager for financial services at Microsoft ANZ, said the work with TAL combined data consolidation with changes to day-to-day operations.

"By unifying its data in Azure and weaving AI into the fabric of its operations, TAL is reimagining how an insurer works from the inside out," Taylor said.

"It's exciting to see them innovating at this scale and we're proud to support TAL as it sets a new standard for customer focused innovation in life insurance," he added.