XBP Global’s $24M AI Deal Signals Major Shift in Insurance Payments

IRVING, TX – December 29, 2025 – Workflow automation leader XBP Global Holdings, Inc. (NASDAQ: XBP) today announced a strategic, multi-year partnership valued at approximately $24 million with a leading, unnamed U.S. property and casualty (P&C) insurance provider. The five-year engagement is set to overhaul the insurer’s entire payment ecosystem, replacing legacy systems with a suite of AI-driven automation technologies.

This deal represents more than just a significant contract for XBP Global; it serves as a powerful indicator of a much broader trend accelerating across the insurance industry. Insurers are increasingly moving to shed decades-old, paper-based processes in favor of intelligent, automated systems that promise greater efficiency, enhanced compliance, and a vastly improved customer experience.

A Strategic Win in a Shifting Landscape

For XBP Global, this partnership is a significant financial and strategic victory. The $24 million contract value, spread over five years, provides a stable, long-term revenue stream. This is particularly noteworthy for the company, which, prior to its major acquisition of Exela Technologies BPA, LLC in July 2025, had seen its annual revenue decline. The acquisition dramatically reshaped its financial outlook, with the combined entity projecting annual revenues approaching $900 million. Securing a deal of this magnitude validates the company’s expanded capabilities and strategic direction post-acquisition.

This engagement is not an isolated success. It follows another recent multi-million euro agreement with a German IT service provider, suggesting a consistent pattern of securing substantial, long-term automation contracts. These wins underscore the market's confidence in XBP Global's proprietary platforms and its “agentic AI” approach, which focuses on creating autonomous systems capable of managing complex workflows with minimal human intervention.

In an industry where technology is becoming the primary competitive differentiator, this partnership solidifies XBP's position as a key player in the digital transformation of the financial services and insurance sectors. It demonstrates the tangible value of its technology stack in solving real-world operational bottlenecks for major enterprises.

Overhauling Legacy Systems with Intelligent Automation

The core of the partnership involves deploying a sophisticated suite of technologies designed to digitize and streamline the insurer's end-to-end payment operations. For decades, many P&C insurers have relied on manual, paper-intensive workflows for processing payments, remittances, and related correspondence. These processes are not only slow and costly but are also prone to human error, creating compliance risks and frustrating customers.

XBP Global aims to dismantle this outdated infrastructure with a multi-pronged technology assault. A key component is the implementation of a Mobile Payment solution, which will allow policyholders to make secure, seamless transactions directly from their mobile devices. This directly addresses the modern consumer's expectation for speed and convenience.

“We are proud to partner with a leading insurer to reimagine payment operations through our AI-driven, hyper-automation enabled ecosystem,” said Lakshmi Narayanan, President – Bills and Payments, XBP Americas, in the original announcement. “This engagement highlights the growing demand for intelligent, mobile-enabled payment solutions that deliver efficiency, accuracy, and an improved customer experience at scale.”

Behind the scenes, XBP’s Intelligent Document Processing (IDP) technology will be a critical engine of efficiency. Unlike traditional Optical Character Recognition (OCR) which simply converts images to text, IDP uses AI and machine learning to understand context, automatically capturing, extracting, and validating payment-related data from a wide variety of structured and unstructured documents. This capability is expected to dramatically reduce manual data entry, accelerate payment reconciliation, and reduce error rates by as much as 80%, according to company materials. The system also includes an Exception Platform to intelligently flag and manage discrepancies, ensuring faster resolution and improved accuracy across all payment workflows.

The AI Imperative in Property & Casualty Insurance

The move by this leading P&C insurer is emblematic of a sector-wide push toward modernization. The insurance industry, traditionally a laggard in technological adoption, is now in the midst of an aggressive digital transformation. According to industry analysts at Forrester, tech spending in the insurance industry is projected to increase by 8% in 2025, with a significant portion of that investment directed toward data, AI, and automation to enhance customer experiences and optimize core processes.

For P&C insurers, the benefits of embracing AI are compelling. Automation of routine tasks allows skilled human employees to focus on more complex, value-added activities like claims negotiation and customer relationship management. The efficiency gains are substantial, with some AI solutions promising to reduce claims processing times from weeks to mere minutes. Furthermore, AI has been shown to improve claims accuracy by nearly 100% and boost customer experience metrics significantly, according to reports in Forbes.

By converting paper-based correspondence into secure digital formats and automating data handling, insurers can not only lower their operational costs but also strengthen their compliance posture. In a heavily regulated industry, the ability to create clear, auditable digital trails for every transaction is a critical risk management function.

Navigating the Risks of AI Implementation

While the promise of AI-driven automation is vast, the path to implementation is not without its challenges. The transition requires more than just deploying new software; it demands a fundamental shift in strategy and a keen awareness of the associated risks. Data security and privacy are paramount, as these AI systems process vast quantities of sensitive policyholder information. A data breach could result in significant regulatory fines and an erosion of customer trust.

Another significant concern is algorithmic bias. If AI models are trained on historical data that contains inherent biases, they can perpetuate or even amplify unfair practices in areas like pricing or claims settlement. Insurers must implement rigorous testing and continuous monitoring to ensure their AI systems are making fair and equitable decisions.

The so-called “black box” problem, where the decision-making process of a complex AI model is opaque, also poses a challenge for auditing and regulatory oversight. To counter this, companies like XBP Global and their clients must ensure that there is sufficient transparency and that human oversight remains a crucial part of the workflow, especially for handling unique or complex edge cases where an algorithm might falter.

Ultimately, this partnership between XBP Global and the P&C insurer serves as a microcosm of the broader industry's journey. It highlights a decisive move away from the analog past and a firm commitment to a future where operations are not just automated, but intelligent, adaptive, and centered entirely around the customer.