Insurance Agents Cannot Be Replaced by AI: Why?

JAKARTA, Kompas.com - The Indonesian Life Insurance Association (AAJI) says the presence of artificial intelligence (AI) in the insurance industry does not automatically replace the role of insurance agents. Executive Director AAJI Emira E. Oepangat emphasised that insurance agents cannot be replaced by AI. ‘When the insurance truly understands living needs, looks at overall needs, it must have trust; the chemistry is difficult,’ she said at Kompas.com Talks: New Standards for Insurance Governance and Customer Protection in Indonesia, on Thursday (5 March 2026). She added that going forward insurance agents will also be equipped with the ability to become financial planners. Emira revealed that although AI cannot replace insurance agents, AI can assist agency work. ‘For example, what is the customer’s profile, which products suit that profile,’ she said. In addition, agents can also use AI to calculate the amount of sum insured and the premium that matches the prospective customer’s profile. Emira explained that the insurance industry might be one of the industries that cannot adopt technology too quickly, including AI. After all, as a long-term financial industry, insurance has many policies over 30 years old. ‘To move those data to follow current technology is very challenging and expensive,’ she said. ‘Therefore, there is a fear that customer data could be lost or changed if moved quickly. The selling provisions of 1974 vs 2024 could swap policies’ terms; it’s dangerous in insurance given the principle of prudence,’ she added. Nevertheless, the adoption of technology to help customers check policy status and for agents to view commissions can already be implemented. The agency distribution channel contributed premium income of Rp 42.25 trillion up to September 2025. This figure is slightly lower than the same period last year at Rp 42.99 trillion. Overall, total premium income for the insurance industry was Rp 133.22 trillion as of September 2025.