Report warns AI agents could automate insurance switching

The Korea Insurance Research Institute published a report on 25 October titled "Spread and Challenges of Consumer-Proxy AI Agents," arguing that general-purpose AI agents could reduce insurers' profits by regularly checking and switching insurance contracts on consumers' behalf, according to inews24.com.

The report says such agents reach financial companies mainly through the consumer's accounts and screens, independent of financial licences, and could handle insurance quotes, sign-ups and cancellations, though whether sales regulations apply remains unclear.

It estimates that Meta's Muse AI agent, launched in September, reached between 2.3 million and 4.7 million downloads in its first two weeks, and cites cases of consumers using Muse to cut car insurance premiums and subscription fees.

Switching and claims risks

Researcher Cho Young-hyun said comparison and switching are likely to increase mainly for standardised products such as car and travel insurance. Cho warned that agent-handled claims could raise claim and loss ratios, and that distinguishing legitimate proxy from identity misuse would become harder for insurers.

The report lists three main issues: whether insurance solicitation rules apply, explanation duties for coverage terms and legal notices, and consumer burden from misuse.