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Will AI Replace Insurance Agents? What to Expect in 2025
Amir Prodensky
CEO
Nov 19, 2025
11 min read
What’s changing, what’s not, and how agents can stay relevant.
A few years ago, I spoke with an insurance agent who joked that AI would “probably take over his desk one day.”
At the time, it sounded far-fetched.
But now, artificial intelligence isn’t some distant concept. It’s here, reshaping how the entire insurance industry works.
What once felt futuristic is now standard practice: from chatbots answering policy questions in seconds to predictive tools spotting risk patterns before they become claims. The numbers tell the story too: the global AI in insurance market, valued at $4.59 billion in 2022, is projected to reach $79.86 billion by 2032, growing more than 33% every year.
The infographic below shows this growth and highlights the key AI capabilities driving it:
That explosive growth raises a big question: will AI replace insurance agents?
The short answer: not exactly. AI isn’t replacing agents. It’s transforming how they work. Automation now takes care of repetitive tasks, freeing agents to focus on what they do best: building trust, solving problems, and closing deals.
In this guide, you’ll learn how these tools are reshaping the agent’s day-to-day work and how to make AI your advantage, not your competition. You’ll discover:
How AI is changing, not eliminating, agent roles
The real-world tools driving this shift
How to use AI to scale your success
We’ll also explore Strada, a cutting-edge AI-driven phone agent platform built for insurance carriers, MGAs, and brokers. It helps teams scale revenue-driving phone calls with natural, conversational AI that sounds just like a real person.
Ready to see how it all comes together? Let’s start by looking at the everyday tasks automation can take on.
What tasks can AI automate in insurance?
AI is taking on more of the repetitive, time-heavy tasks that once filled an insurance agent’s day. It’s not replacing people. It’s empowering them to focus on what truly drives results: clients and growth.
By automating routine tasks, AI is changing how insurance teams operate, making everything faster, simpler, and more efficient.
Let’s look at how an average day for an insurance agent has changed with AI in the mix.
Let’s look at what’s already happening.
Routine and administrative tasks
AI now handles claims processing, data entry, and policy issuance in seconds. Smart automation tools extract information from forms, verify data, and even issue policies automatically.
These steps once took hours; now they happen in seconds. Agents spend less time on forms and more time helping clients make better coverage decisions.
Chatbots and virtual assistants
Digital helpers are now everywhere. Companies like Lemonade use AI chatbot Maya to guide customers through claims and quotes 24/7.
Strada takes this a step further with AI phone agents that manage live calls: collecting claim details, updating policies, and even triggering follow-up workflows automatically. It brings the same instant, friendly experience to voice conversations that others offer through chat.
Here’s what that looks like in action:
Answers calls instantly → no hold times or transfers.
Handles renewals and claims → collects info and updates records in real time.
Follows up automatically → sends texts, emails, or triggers tasks after each call.
These tools provide quick, consistent help with no waiting and no need for escalation.
AI-powered fraud detection
Fraud detection is another big win for AI. Machine learning models flag suspicious patterns, while natural language processing (NLP) scans claim notes for unusual behavior.
This combination spots fraud early and keeps the process fair for honest customers.
Underwriting and predictive analytics
AI is changing underwriting, too. Daido Life Insurance in Japan uses AI-driven models to assess risk and automate approvals.
PwC uses AI for image-based damage detection, helping adjusters estimate repairs accurately within minutes.
Predictive analytics also helps agents anticipate which clients are likely to renew or lapse, so they can act early.
Smarter customer support
AI tools now handle after-hours calls and chat. Services like Sonant AI act as virtual receptionists, answering questions and scheduling follow-ups when no one’s in the office.
Strada’s AI phone agents take this further by managing 24/7 inbound and outbound calls for renewals, policy servicing, and first notice of loss. There’s zero hold time, and human agents are free from constant phone interruptions.
Here’s a quick snapshot of the most common AI automation tasks in insurance and how they lighten the workload for agents.
Task type | Example | Impact on agent workload |
Claims processing | Lemonade’s AI chatbot | Cuts claim handling time from hours to minutes |
Data entry & Policy issuance | Automated form processing | Removes manual admin tasks |
Fraud detection | Pattern recognition, NLP scanning | Reduces false claims, speeds payouts |
Underwriting | Daido Life’s AI models | Faster, more accurate approvals |
Sonant AI, Strada phone agents | 24/7 service, zero hold time |
So, can AI replace insurance agents? No, it enhances them. By taking over routine tasks, it allows you to focus on empathy, advising, and building trust, which are things no machine can truly replicate.
Next, let’s take a closer look at where humans still can’t be replaced and why that matters.
Where does human expertise remain essential?
Even with smarter AI tools, human expertise still plays a vital role in insurance. Some things simply can’t be automated and that’s where agents shine.
When clients face emotional or complex situations, like health issues, major accidents, or the loss of a loved one, they don’t want a chatbot.
They want someone who listens, understands, and guides them through difficult decisions. That empathy builds trust and strengthens long-term relationships. It’s what keeps clients loyal, even as automation becomes more common.
AI can process thousands of data points, but it can’t grasp the full context of a client’s life. Agents use their judgment and experience to provide nuanced advice that fits each person’s goals and circumstances.
Choosing the right coverage or planning for the future requires more than numbers; it requires care, intuition, and perspective.
That means:
Listening closely to what customers really need, not just what they ask for.
Understanding life changes that affect coverage, like a new home or growing family.
Balancing options to find the right mix of protection and affordability.
Human agents also play a vital role in oversight and ethics. Regulatory compliance, fairness, and transparency demand human supervision.
Even companies like MetLife, which use advanced AI compliance tools, rely on people to ensure responsible decision-making.
And when crises hit, during a complex claim or disputed payout, it’s the human advocate who steps up, communicates clearly, and stands by the client’s side. No algorithm can replicate that.
That’s why AI works best as a partner, not a replacement. And let’s visualize how AI and humans split the work in a typical agency today.
Platforms like Strada prove this balance in action. Its AI-driven phone agents handle 24/7 calls for renewals, FNOL, and policy servicing. This lets human agents focus on meaningful conversations, strategic planning, and client relationships that drive long-term success.
AI may streamline processes, but it’s people who bring empathy, trust, and heart to the business of insurance.
So, how are insurance agents’ workflows evolving with automation? Let’s take a closer look.
How are insurance agents’ roles evolving with AI?
You’ve probably noticed how fast AI is transforming insurance.
It’s not about whether AI agents replace SaaS systems; it’s about how humans and technology work better together. The role of the insurance agent is shifting, not shrinking.
From transactions to trusted advisors
AI now handles much of the routine work, such as claims, data entry, and renewals, freeing agents to do what machines can’t. Instead of processing policies, you’re helping clients make sense of their options, plan for the future, and feel confident about their choices.
Agents are moving from transaction processors to trusted advisors. You’re focusing on complex case guidance, building relationships, supporting clients during crises, and offering long-term strategic planning.
These high-value tasks put empathy and expertise front and center again.
Turning AI insights into personalized service
Agents now use AI to analyze data from usage-based insurance and health monitoring devices, giving them real-time insights into clients’ needs.
For instance, Pula’s microinsurance platform uses AI to offer tailored protection for small farmers, showing how powerful personalization can be.
This shift means you can anticipate needs rather than react to problems. You’ll see more agents using AI-powered dashboards to spot trends, personalize offers, and improve client satisfaction.
The rise of hybrid models
Many insurers are adopting hybrid models that blend AI automation with the human touch.
Sonant’s conversational AI shows how this works: it greets customers, answers simple questions, and seamlessly transfers complex ones to live agents. That mix keeps experiences efficient and personal.
Strada’s conversational AI takes it a step further. It gives real-time call outcome intelligence, so you know exactly what was discussed and what action to take next.
Here’s what that means in practice:
Summarizes every call → captures key points, requests, and outcomes automatically.
Identifies next steps → flags follow-ups like renewals, payments, or document requests.
Updates systems instantly → syncs notes and actions to your CRM or AMS in real time.
Notifies the right people → alerts agents or teams so nothing falls through the cracks.
That insight empowers you to deliver more informed, thoughtful client engagement in every interaction.
To thrive alongside AI, you need to sharpen a new set of skills. It’s not just about understanding policies anymore; it’s about understanding data. Agents must learn to interpret AI-driven insights and use them to shape smarter, more personalized advice.
Equally important are the human skills that machines can’t replace. Strong communication, emotional intelligence, and adaptability help you connect on a deeper level and use new tools with confidence.
Combining these strengths with AI support turns agents into true partners in protection, not just policy sellers.
Here’s how insurance roles are evolving, from the old ways of working to the new, AI-empowered approach.
Before AI | With AI | Key skills needed |
Manual data entry and quotes | Advisory and consultative services | Communication, empathy |
Reactive customer service | Proactive, data-informed support | Analytical thinking |
Limited personalization | Tailored coverage using AI insights | Data literacy |
Isolated tasks | Hybrid teamwork with AI tools | Tech adaptability |
Matter-of-factly, AI doesn’t replace agents; it enhances them. With automation handling the busywork, you get more time to connect, advise, and create real value for every client.
Next, let’s explore the key tools driving this change and how they’re being used across the insurance industry.
What are current practical examples and tools driving change?
AI isn’t a distant promise anymore. It’s here, reshaping how insurance professionals work every day.
From handling customer calls to automating back-office work, these tools show how AI agents replace SaaS systems and even help businesses scale faster than before.
But, it’s not about AI to replace call center agents, it’s about enhancing how agents work and freeing them from repetitive tasks. Let’s look at what’s actually driving change right now.
Smarter AI platforms and agentic systems
Next-generation platforms like Strada are redefining how insurance operations work. Instead of just automating tasks, Strada’s agentic AI listens, reasons, and acts, turning every customer interaction into instant business action.
It combines automation, natural language understanding, and predictive analytics to help insurers manage claims, renewals, and service requests faster and more accurately.
For example, Strada’s AI can handle an incoming call or message, identify the intent (like a renewal, policy change, or claim update), and route it to the correct workflow automatically.
No menus, no hold times. Just intelligent, instant action.
Automation that simplifies work
Strada doesn’t just handle calls. It transforms the entire workflow behind them. Its Workflows engine automatically performs post-call actions like updating CRMs, assigning adjusters, sending documents, or triggering billing reminders.
Agents no longer waste hours on manual updates or follow-ups. Instead, Strada summarizes every interaction, records outcomes, and syncs data across systems in real time.
The result: faster operations, fewer errors, and more time for agents to focus on advising clients instead of managing admin work.
In short, Strada turns busywork into background work — done automatically and accurately.
Lead qualification and retention made easier
Strada also helps insurance teams capture and convert more opportunities. Its AI phone agents qualify inbound leads automatically, identify intent and readiness to buy, and connect serious prospects directly to available producers.
No waiting, no drop-offs. Just warm, ready-to-convert conversations.
Beyond lead capture, Strada helps with renewal and retention workflows too. When a policyholder mentions shopping around or being unsure, Strada flags the account as at-risk, triggers a save task, and alerts the retention team immediately.
This kind of automation turns call centers into smart engagement hubs, where every call counts and every opportunity gets the right attention, automatically.
Financial workflows and reconciliation
Finance teams are also getting AI help. Applied Systems’ Automated Statements tool handles commission reconciliation automatically, matching carrier statements to policies in seconds.
Here’s what AI can do for finance teams in practice:
Match payments automatically → reconcile carrier statements with the correct policies.
Spot discrepancies early → flag missing commissions or mismatched amounts instantly.
Generate reports fast → create summaries for accounting and compliance in minutes.
Reduce manual data entry → pull data directly from billing and policy systems.
Improve accuracy → eliminate human errors common in large spreadsheets.
What used to take hours of spreadsheet work now happens with a click.
Conversational AI for better experiences
Strada’s conversational AI is transforming how insurers handle customer interactions, especially over the phone, where most service still happens.
Its AI voice agents answer calls instantly, provide accurate information, and handle requests like renewals, claim updates, or document requests without hold times. When empathy or complex decisions are needed, Strada automatically transfers the call to a live agent – complete with full context and call notes, so nothing has to be repeated.
Here’s what that means in practice:
24/7 coverage → customers can reach support anytime, even after hours.
Instant resolution → common requests are handled in minutes, not hours.
Smooth handoff → agents step in seamlessly when human judgment is required.
Better experience → no waiting, no repetition, just fast and friendly service.
With Strada, insurers deliver consistent, high-quality conversations at scale — giving every caller the same attentive experience, day or night.
AI is transforming insurance. These tools show that automation and human expertise can work side by side to deliver smarter service, stronger relationships, and a more connected insurance experience.
Of course, automation isn’t without its flaws. Let’s take a closer look at the most common challenges.
What challenges and limitations does AI face in insurance?
AI is powerful, but it’s not perfect. While automation and analytics improve efficiency, there are still areas where technology falls short and humans shine.
Here’s a simple breakdown of common challenges plus practical ways to avoid them and tools that can help.
Challenge | How to avoid It | Tools that can help |
Lack of emotional intelligence | Use AI for routine steps, but route sensitive claims (like life or health) to human agents who can show empathy. | Strada’s voice AI with seamless human handoff; CRM systems with call routing rules. |
Trust gap with customers or agents | Be transparent about when and how AI is used; pair AI insights with human validation. | Strada’s insurance-trained AI with compliance tools; AI dashboards for review before sending. |
Complex or nuanced cases | Set clear rules for when AI should escalate to humans; use automation for prep work, not final judgment. | Strada Workflows with escalation triggers; rule-based automation in AMS/CRM systems. |
Regulatory and ethical oversight | Keep humans in the loop for decisions affecting compliance, fairness, or payouts; maintain audit trails. | Strada’s built-in evaluation tools; compliance monitoring software like LogicGate or Resolver. |
Technical integration issues | Start small, integrate AI with one workflow at a time, and provide staff training before scaling. | Strada’s low-code integration tools; Zapier, Make, or API connectors for AMS/CRM sync. |
Data quality and consistency | Clean and standardize data before automation; set up validation rules for accuracy. | Data prep tools like Talend or OpenRefine; Strada’s structured workflow automation. |
AI can make insurance faster, more accurate, and more proactive. But only when it works with people, not instead of them.
Next, let’s explore how to implement automation in your workflow effectively and with real impact.
How can insurance agencies implement AI successfully?
AI adoption in insurance doesn’t have to be complicated. Success comes from taking small, strategic steps, not trying to automate everything at once.
Let’s explore how to confidently adopt AI while keeping humans at the heart of every interaction.
Start small and target real pain points
The best place to begin is by automating repetitive, time-consuming tasks that don’t require human judgment. Focus on clear areas where AI can make an immediate impact:
After-hours calls → use AI receptionists or voice bots to capture client needs 24/7.
Lead routing → automatically direct new leads to the right agent or department.
Renewal reminders → set up smart notifications that reach clients at the perfect time.
This approach saves hours each week and shows quick wins that build team confidence.
Train and empower your agents
AI works best when your agents know how to use it. Invest in training that explains both its strengths and limits.
Show agents how AI can handle background work while they take the lead on empathy and advice. The more confident your team feels, the faster adoption sticks.
Balance automation with the human touch
Define clear rules for when AI handles a task and when a person should step in. Establishing strong AI-human handoff protocols ensures clients always feel heard.
Pair that with clear communication: let customers know AI supports your team but never replaces it. That transparency builds trust and sets expectations early.
Measure what really matters
Efficiency is important, but it’s not everything.
Track metrics that show how AI is improving your business overall:
Customer satisfaction and loyalty
Agent time allocation and workload balance
Client retention and renewals
Revenue per agent
These numbers reveal the true impact of AI on both performance and relationships, not just speed.
Adopt proven, scalable tools
Choose platforms that simplify adoption. Strada is a great example, a turnkey voice AI solution that requires no engineering lift.
It’s built for scalability, data security (SOC 2 Type 2 compliance, data isolation), and transparency so stakeholders can trust every interaction.
Strada’s design makes it easy to integrate AI into daily workflows while maintaining total human oversight.
When implemented thoughtfully, AI doesn’t replace people; it amplifies them. Start small, train your team, measure results, and choose the right tools.
That’s how you’ll turn automation into a true advantage for your agency in 2025 and beyond.
So, how can humans and AI work together most effectively? Let’s explore some of the best approaches.
What frameworks and methodologies support effective human-AI collaboration in insurance?
The future of insurance isn’t about humans or AI; it’s about how both work together. Agencies that master this balance will deliver faster service, smarter insights, and a better customer experience.
Let’s look at the key frameworks and methods helping agencies do this well.
Approach | What it means | How it works in practice | Key benefits |
Human-in-the-Loop (HITL) | Keeps people involved in every stage of AI decision-making. | Agents review and approve AI-generated decisions for claims, underwriting, or service. Their feedback trains AI continuously to improve accuracy. | - Builds trust and accountability - Ensures sensitive cases get human review - Makes AI smarter and safer over time |
Adaptive AI | AI that learns and adjusts based on human input and client behavior. | Agents can edit AI-generated messages, quotes, or renewals. The system learns these adjustments to personalize future recommendations. | - Delivers personalized service at scale - Makes AI responses more human and relevant - Strengthens customer relationships |
Agile adoption | Gradual rollout of AI in small, manageable phases. | Start with one workflow (e.g., lead routing or renewals), test results, gather feedback, then expand to other areas. | - Reduces disruption - Builds confidence and team buy-in - Enables faster, lower-risk implementation |
Explainable AI (XAI) | Makes AI decisions transparent and understandable. | Shows why a recommendation or decision was made (for example, risk scores or claim outcomes) in clear terms for agents and customers. | - Increases transparency and compliance - Builds customer confidence - Supports fair, ethical decision-making |
Change management | Focuses on the human side of AI adoption. | Communicate early about AI goals, train staff before launch, and involve them in testing to build trust and reduce resistance. | - Improves team adoption - Reduces hesitation and confusion - Ensures long-term success and collaboration |
When humans and AI work together effectively, everyone wins. The technology becomes a trusted partner, not a replacement, making the entire insurance experience smarter, faster, and more human than ever.
Now you know what’s coming in 2025 and beyond and how to work hand in hand with AI. It’s the perfect time to bring automation into your workflow. But before that, let’s do a quick recap.
What’s the smartest first step toward AI-assisted insurance?
So, will AI replace insurance agents? The answer is no. It’ll transform them. Instead of replacing humans, AI is pushing agents toward higher-value, customer-centric roles focused on strategy, relationships, and trust.
AI is transforming agents into higher-value, customer-centric advisors. You’ll spend less time on admin work and more time building relationships, solving complex problems, and guiding clients through life’s biggest decisions.
The secret is balance. When you blend human intelligence with AI efficiency, you get the best of both worlds: accuracy, speed, and empathy working in sync.
Agencies that embrace this shift strategically will gain a clear competitive edge and deliver experiences that customers genuinely trust.
That’s where Strada leads the way. It’s a leading AI phone agent solution built for insurance carriers, MGAs, and brokers who want to scale efficiently without losing the human touch.
Strada’s conversational AI handles calls, renewals, and servicing instantly, while Strada Workflows automate the follow-up tasks, like quote recovery and payment reminders, so your team can focus on real connections.
The future of insurance isn’t human or AI; it’s human and AI. Together, they’ll reshape the industry into something faster, fairer, and more connected than ever.
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Will AI Replace Insurance Agents? What to Expect in 2025
Amir Prodensky
CEO
Nov 19, 2025
11 min read
What’s changing, what’s not, and how agents can stay relevant.
A few years ago, I spoke with an insurance agent who joked that AI would “probably take over his desk one day.”
At the time, it sounded far-fetched.
But now, artificial intelligence isn’t some distant concept. It’s here, reshaping how the entire insurance industry works.
What once felt futuristic is now standard practice: from chatbots answering policy questions in seconds to predictive tools spotting risk patterns before they become claims. The numbers tell the story too: the global AI in insurance market, valued at $4.59 billion in 2022, is projected to reach $79.86 billion by 2032, growing more than 33% every year.
The infographic below shows this growth and highlights the key AI capabilities driving it:
That explosive growth raises a big question: will AI replace insurance agents?
The short answer: not exactly. AI isn’t replacing agents. It’s transforming how they work. Automation now takes care of repetitive tasks, freeing agents to focus on what they do best: building trust, solving problems, and closing deals.
In this guide, you’ll learn how these tools are reshaping the agent’s day-to-day work and how to make AI your advantage, not your competition. You’ll discover:
How AI is changing, not eliminating, agent roles
The real-world tools driving this shift
How to use AI to scale your success
We’ll also explore Strada, a cutting-edge AI-driven phone agent platform built for insurance carriers, MGAs, and brokers. It helps teams scale revenue-driving phone calls with natural, conversational AI that sounds just like a real person.
Ready to see how it all comes together? Let’s start by looking at the everyday tasks automation can take on.
What tasks can AI automate in insurance?
AI is taking on more of the repetitive, time-heavy tasks that once filled an insurance agent’s day. It’s not replacing people. It’s empowering them to focus on what truly drives results: clients and growth.
By automating routine tasks, AI is changing how insurance teams operate, making everything faster, simpler, and more efficient.
Let’s look at how an average day for an insurance agent has changed with AI in the mix.
Let’s look at what’s already happening.
Routine and administrative tasks
AI now handles claims processing, data entry, and policy issuance in seconds. Smart automation tools extract information from forms, verify data, and even issue policies automatically.
These steps once took hours; now they happen in seconds. Agents spend less time on forms and more time helping clients make better coverage decisions.
Chatbots and virtual assistants
Digital helpers are now everywhere. Companies like Lemonade use AI chatbot Maya to guide customers through claims and quotes 24/7.
Strada takes this a step further with AI phone agents that manage live calls: collecting claim details, updating policies, and even triggering follow-up workflows automatically. It brings the same instant, friendly experience to voice conversations that others offer through chat.
Here’s what that looks like in action:
Answers calls instantly → no hold times or transfers.
Handles renewals and claims → collects info and updates records in real time.
Follows up automatically → sends texts, emails, or triggers tasks after each call.
These tools provide quick, consistent help with no waiting and no need for escalation.
AI-powered fraud detection
Fraud detection is another big win for AI. Machine learning models flag suspicious patterns, while natural language processing (NLP) scans claim notes for unusual behavior.
This combination spots fraud early and keeps the process fair for honest customers.
Underwriting and predictive analytics
AI is changing underwriting, too. Daido Life Insurance in Japan uses AI-driven models to assess risk and automate approvals.
PwC uses AI for image-based damage detection, helping adjusters estimate repairs accurately within minutes.
Predictive analytics also helps agents anticipate which clients are likely to renew or lapse, so they can act early.
Smarter customer support
AI tools now handle after-hours calls and chat. Services like Sonant AI act as virtual receptionists, answering questions and scheduling follow-ups when no one’s in the office.
Strada’s AI phone agents take this further by managing 24/7 inbound and outbound calls for renewals, policy servicing, and first notice of loss. There’s zero hold time, and human agents are free from constant phone interruptions.
Here’s a quick snapshot of the most common AI automation tasks in insurance and how they lighten the workload for agents.
Task type | Example | Impact on agent workload |
Claims processing | Lemonade’s AI chatbot | Cuts claim handling time from hours to minutes |
Data entry & Policy issuance | Automated form processing | Removes manual admin tasks |
Fraud detection | Pattern recognition, NLP scanning | Reduces false claims, speeds payouts |
Underwriting | Daido Life’s AI models | Faster, more accurate approvals |
Sonant AI, Strada phone agents | 24/7 service, zero hold time |
So, can AI replace insurance agents? No, it enhances them. By taking over routine tasks, it allows you to focus on empathy, advising, and building trust, which are things no machine can truly replicate.
Next, let’s take a closer look at where humans still can’t be replaced and why that matters.
Where does human expertise remain essential?
Even with smarter AI tools, human expertise still plays a vital role in insurance. Some things simply can’t be automated and that’s where agents shine.
When clients face emotional or complex situations, like health issues, major accidents, or the loss of a loved one, they don’t want a chatbot.
They want someone who listens, understands, and guides them through difficult decisions. That empathy builds trust and strengthens long-term relationships. It’s what keeps clients loyal, even as automation becomes more common.
AI can process thousands of data points, but it can’t grasp the full context of a client’s life. Agents use their judgment and experience to provide nuanced advice that fits each person’s goals and circumstances.
Choosing the right coverage or planning for the future requires more than numbers; it requires care, intuition, and perspective.
That means:
Listening closely to what customers really need, not just what they ask for.
Understanding life changes that affect coverage, like a new home or growing family.
Balancing options to find the right mix of protection and affordability.
Human agents also play a vital role in oversight and ethics. Regulatory compliance, fairness, and transparency demand human supervision.
Even companies like MetLife, which use advanced AI compliance tools, rely on people to ensure responsible decision-making.
And when crises hit, during a complex claim or disputed payout, it’s the human advocate who steps up, communicates clearly, and stands by the client’s side. No algorithm can replicate that.
That’s why AI works best as a partner, not a replacement. And let’s visualize how AI and humans split the work in a typical agency today.
Platforms like Strada prove this balance in action. Its AI-driven phone agents handle 24/7 calls for renewals, FNOL, and policy servicing. This lets human agents focus on meaningful conversations, strategic planning, and client relationships that drive long-term success.
AI may streamline processes, but it’s people who bring empathy, trust, and heart to the business of insurance.
So, how are insurance agents’ workflows evolving with automation? Let’s take a closer look.
How are insurance agents’ roles evolving with AI?
You’ve probably noticed how fast AI is transforming insurance.
It’s not about whether AI agents replace SaaS systems; it’s about how humans and technology work better together. The role of the insurance agent is shifting, not shrinking.
From transactions to trusted advisors
AI now handles much of the routine work, such as claims, data entry, and renewals, freeing agents to do what machines can’t. Instead of processing policies, you’re helping clients make sense of their options, plan for the future, and feel confident about their choices.
Agents are moving from transaction processors to trusted advisors. You’re focusing on complex case guidance, building relationships, supporting clients during crises, and offering long-term strategic planning.
These high-value tasks put empathy and expertise front and center again.
Turning AI insights into personalized service
Agents now use AI to analyze data from usage-based insurance and health monitoring devices, giving them real-time insights into clients’ needs.
For instance, Pula’s microinsurance platform uses AI to offer tailored protection for small farmers, showing how powerful personalization can be.
This shift means you can anticipate needs rather than react to problems. You’ll see more agents using AI-powered dashboards to spot trends, personalize offers, and improve client satisfaction.
The rise of hybrid models
Many insurers are adopting hybrid models that blend AI automation with the human touch.
Sonant’s conversational AI shows how this works: it greets customers, answers simple questions, and seamlessly transfers complex ones to live agents. That mix keeps experiences efficient and personal.
Strada’s conversational AI takes it a step further. It gives real-time call outcome intelligence, so you know exactly what was discussed and what action to take next.
Here’s what that means in practice:
Summarizes every call → captures key points, requests, and outcomes automatically.
Identifies next steps → flags follow-ups like renewals, payments, or document requests.
Updates systems instantly → syncs notes and actions to your CRM or AMS in real time.
Notifies the right people → alerts agents or teams so nothing falls through the cracks.
That insight empowers you to deliver more informed, thoughtful client engagement in every interaction.
To thrive alongside AI, you need to sharpen a new set of skills. It’s not just about understanding policies anymore; it’s about understanding data. Agents must learn to interpret AI-driven insights and use them to shape smarter, more personalized advice.
Equally important are the human skills that machines can’t replace. Strong communication, emotional intelligence, and adaptability help you connect on a deeper level and use new tools with confidence.
Combining these strengths with AI support turns agents into true partners in protection, not just policy sellers.
Here’s how insurance roles are evolving, from the old ways of working to the new, AI-empowered approach.
Before AI | With AI | Key skills needed |
Manual data entry and quotes | Advisory and consultative services | Communication, empathy |
Reactive customer service | Proactive, data-informed support | Analytical thinking |
Limited personalization | Tailored coverage using AI insights | Data literacy |
Isolated tasks | Hybrid teamwork with AI tools | Tech adaptability |
Matter-of-factly, AI doesn’t replace agents; it enhances them. With automation handling the busywork, you get more time to connect, advise, and create real value for every client.
Next, let’s explore the key tools driving this change and how they’re being used across the insurance industry.
What are current practical examples and tools driving change?
AI isn’t a distant promise anymore. It’s here, reshaping how insurance professionals work every day.
From handling customer calls to automating back-office work, these tools show how AI agents replace SaaS systems and even help businesses scale faster than before.
But, it’s not about AI to replace call center agents, it’s about enhancing how agents work and freeing them from repetitive tasks. Let’s look at what’s actually driving change right now.
Smarter AI platforms and agentic systems
Next-generation platforms like Strada are redefining how insurance operations work. Instead of just automating tasks, Strada’s agentic AI listens, reasons, and acts, turning every customer interaction into instant business action.
It combines automation, natural language understanding, and predictive analytics to help insurers manage claims, renewals, and service requests faster and more accurately.
For example, Strada’s AI can handle an incoming call or message, identify the intent (like a renewal, policy change, or claim update), and route it to the correct workflow automatically.
No menus, no hold times. Just intelligent, instant action.
Automation that simplifies work
Strada doesn’t just handle calls. It transforms the entire workflow behind them. Its Workflows engine automatically performs post-call actions like updating CRMs, assigning adjusters, sending documents, or triggering billing reminders.
Agents no longer waste hours on manual updates or follow-ups. Instead, Strada summarizes every interaction, records outcomes, and syncs data across systems in real time.
The result: faster operations, fewer errors, and more time for agents to focus on advising clients instead of managing admin work.
In short, Strada turns busywork into background work — done automatically and accurately.
Lead qualification and retention made easier
Strada also helps insurance teams capture and convert more opportunities. Its AI phone agents qualify inbound leads automatically, identify intent and readiness to buy, and connect serious prospects directly to available producers.
No waiting, no drop-offs. Just warm, ready-to-convert conversations.
Beyond lead capture, Strada helps with renewal and retention workflows too. When a policyholder mentions shopping around or being unsure, Strada flags the account as at-risk, triggers a save task, and alerts the retention team immediately.
This kind of automation turns call centers into smart engagement hubs, where every call counts and every opportunity gets the right attention, automatically.
Financial workflows and reconciliation
Finance teams are also getting AI help. Applied Systems’ Automated Statements tool handles commission reconciliation automatically, matching carrier statements to policies in seconds.
Here’s what AI can do for finance teams in practice:
Match payments automatically → reconcile carrier statements with the correct policies.
Spot discrepancies early → flag missing commissions or mismatched amounts instantly.
Generate reports fast → create summaries for accounting and compliance in minutes.
Reduce manual data entry → pull data directly from billing and policy systems.
Improve accuracy → eliminate human errors common in large spreadsheets.
What used to take hours of spreadsheet work now happens with a click.
Conversational AI for better experiences
Strada’s conversational AI is transforming how insurers handle customer interactions, especially over the phone, where most service still happens.
Its AI voice agents answer calls instantly, provide accurate information, and handle requests like renewals, claim updates, or document requests without hold times. When empathy or complex decisions are needed, Strada automatically transfers the call to a live agent – complete with full context and call notes, so nothing has to be repeated.
Here’s what that means in practice:
24/7 coverage → customers can reach support anytime, even after hours.
Instant resolution → common requests are handled in minutes, not hours.
Smooth handoff → agents step in seamlessly when human judgment is required.
Better experience → no waiting, no repetition, just fast and friendly service.
With Strada, insurers deliver consistent, high-quality conversations at scale — giving every caller the same attentive experience, day or night.
AI is transforming insurance. These tools show that automation and human expertise can work side by side to deliver smarter service, stronger relationships, and a more connected insurance experience.
Of course, automation isn’t without its flaws. Let’s take a closer look at the most common challenges.
What challenges and limitations does AI face in insurance?
AI is powerful, but it’s not perfect. While automation and analytics improve efficiency, there are still areas where technology falls short and humans shine.
Here’s a simple breakdown of common challenges plus practical ways to avoid them and tools that can help.
Challenge | How to avoid It | Tools that can help |
Lack of emotional intelligence | Use AI for routine steps, but route sensitive claims (like life or health) to human agents who can show empathy. | Strada’s voice AI with seamless human handoff; CRM systems with call routing rules. |
Trust gap with customers or agents | Be transparent about when and how AI is used; pair AI insights with human validation. | Strada’s insurance-trained AI with compliance tools; AI dashboards for review before sending. |
Complex or nuanced cases | Set clear rules for when AI should escalate to humans; use automation for prep work, not final judgment. | Strada Workflows with escalation triggers; rule-based automation in AMS/CRM systems. |
Regulatory and ethical oversight | Keep humans in the loop for decisions affecting compliance, fairness, or payouts; maintain audit trails. | Strada’s built-in evaluation tools; compliance monitoring software like LogicGate or Resolver. |
Technical integration issues | Start small, integrate AI with one workflow at a time, and provide staff training before scaling. | Strada’s low-code integration tools; Zapier, Make, or API connectors for AMS/CRM sync. |
Data quality and consistency | Clean and standardize data before automation; set up validation rules for accuracy. | Data prep tools like Talend or OpenRefine; Strada’s structured workflow automation. |
AI can make insurance faster, more accurate, and more proactive. But only when it works with people, not instead of them.
Next, let’s explore how to implement automation in your workflow effectively and with real impact.
How can insurance agencies implement AI successfully?
AI adoption in insurance doesn’t have to be complicated. Success comes from taking small, strategic steps, not trying to automate everything at once.
Let’s explore how to confidently adopt AI while keeping humans at the heart of every interaction.
Start small and target real pain points
The best place to begin is by automating repetitive, time-consuming tasks that don’t require human judgment. Focus on clear areas where AI can make an immediate impact:
After-hours calls → use AI receptionists or voice bots to capture client needs 24/7.
Lead routing → automatically direct new leads to the right agent or department.
Renewal reminders → set up smart notifications that reach clients at the perfect time.
This approach saves hours each week and shows quick wins that build team confidence.
Train and empower your agents
AI works best when your agents know how to use it. Invest in training that explains both its strengths and limits.
Show agents how AI can handle background work while they take the lead on empathy and advice. The more confident your team feels, the faster adoption sticks.
Balance automation with the human touch
Define clear rules for when AI handles a task and when a person should step in. Establishing strong AI-human handoff protocols ensures clients always feel heard.
Pair that with clear communication: let customers know AI supports your team but never replaces it. That transparency builds trust and sets expectations early.
Measure what really matters
Efficiency is important, but it’s not everything.
Track metrics that show how AI is improving your business overall:
Customer satisfaction and loyalty
Agent time allocation and workload balance
Client retention and renewals
Revenue per agent
These numbers reveal the true impact of AI on both performance and relationships, not just speed.
Adopt proven, scalable tools
Choose platforms that simplify adoption. Strada is a great example, a turnkey voice AI solution that requires no engineering lift.
It’s built for scalability, data security (SOC 2 Type 2 compliance, data isolation), and transparency so stakeholders can trust every interaction.
Strada’s design makes it easy to integrate AI into daily workflows while maintaining total human oversight.
When implemented thoughtfully, AI doesn’t replace people; it amplifies them. Start small, train your team, measure results, and choose the right tools.
That’s how you’ll turn automation into a true advantage for your agency in 2025 and beyond.
So, how can humans and AI work together most effectively? Let’s explore some of the best approaches.
What frameworks and methodologies support effective human-AI collaboration in insurance?
The future of insurance isn’t about humans or AI; it’s about how both work together. Agencies that master this balance will deliver faster service, smarter insights, and a better customer experience.
Let’s look at the key frameworks and methods helping agencies do this well.
Approach | What it means | How it works in practice | Key benefits |
Human-in-the-Loop (HITL) | Keeps people involved in every stage of AI decision-making. | Agents review and approve AI-generated decisions for claims, underwriting, or service. Their feedback trains AI continuously to improve accuracy. | - Builds trust and accountability - Ensures sensitive cases get human review - Makes AI smarter and safer over time |
Adaptive AI | AI that learns and adjusts based on human input and client behavior. | Agents can edit AI-generated messages, quotes, or renewals. The system learns these adjustments to personalize future recommendations. | - Delivers personalized service at scale - Makes AI responses more human and relevant - Strengthens customer relationships |
Agile adoption | Gradual rollout of AI in small, manageable phases. | Start with one workflow (e.g., lead routing or renewals), test results, gather feedback, then expand to other areas. | - Reduces disruption - Builds confidence and team buy-in - Enables faster, lower-risk implementation |
Explainable AI (XAI) | Makes AI decisions transparent and understandable. | Shows why a recommendation or decision was made (for example, risk scores or claim outcomes) in clear terms for agents and customers. | - Increases transparency and compliance - Builds customer confidence - Supports fair, ethical decision-making |
Change management | Focuses on the human side of AI adoption. | Communicate early about AI goals, train staff before launch, and involve them in testing to build trust and reduce resistance. | - Improves team adoption - Reduces hesitation and confusion - Ensures long-term success and collaboration |
When humans and AI work together effectively, everyone wins. The technology becomes a trusted partner, not a replacement, making the entire insurance experience smarter, faster, and more human than ever.
Now you know what’s coming in 2025 and beyond and how to work hand in hand with AI. It’s the perfect time to bring automation into your workflow. But before that, let’s do a quick recap.
What’s the smartest first step toward AI-assisted insurance?
So, will AI replace insurance agents? The answer is no. It’ll transform them. Instead of replacing humans, AI is pushing agents toward higher-value, customer-centric roles focused on strategy, relationships, and trust.
AI is transforming agents into higher-value, customer-centric advisors. You’ll spend less time on admin work and more time building relationships, solving complex problems, and guiding clients through life’s biggest decisions.
The secret is balance. When you blend human intelligence with AI efficiency, you get the best of both worlds: accuracy, speed, and empathy working in sync.
Agencies that embrace this shift strategically will gain a clear competitive edge and deliver experiences that customers genuinely trust.
That’s where Strada leads the way. It’s a leading AI phone agent solution built for insurance carriers, MGAs, and brokers who want to scale efficiently without losing the human touch.
Strada’s conversational AI handles calls, renewals, and servicing instantly, while Strada Workflows automate the follow-up tasks, like quote recovery and payment reminders, so your team can focus on real connections.
The future of insurance isn’t human or AI; it’s human and AI. Together, they’ll reshape the industry into something faster, fairer, and more connected than ever.
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Will AI Replace Insurance Agents? What to Expect in 2025
Amir Prodensky
CEO
Nov 19, 2025
11 min read
What’s changing, what’s not, and how agents can stay relevant.
A few years ago, I spoke with an insurance agent who joked that AI would “probably take over his desk one day.”
At the time, it sounded far-fetched.
But now, artificial intelligence isn’t some distant concept. It’s here, reshaping how the entire insurance industry works.
What once felt futuristic is now standard practice: from chatbots answering policy questions in seconds to predictive tools spotting risk patterns before they become claims. The numbers tell the story too: the global AI in insurance market, valued at $4.59 billion in 2022, is projected to reach $79.86 billion by 2032, growing more than 33% every year.
The infographic below shows this growth and highlights the key AI capabilities driving it:
That explosive growth raises a big question: will AI replace insurance agents?
The short answer: not exactly. AI isn’t replacing agents. It’s transforming how they work. Automation now takes care of repetitive tasks, freeing agents to focus on what they do best: building trust, solving problems, and closing deals.
In this guide, you’ll learn how these tools are reshaping the agent’s day-to-day work and how to make AI your advantage, not your competition. You’ll discover:
How AI is changing, not eliminating, agent roles
The real-world tools driving this shift
How to use AI to scale your success
We’ll also explore Strada, a cutting-edge AI-driven phone agent platform built for insurance carriers, MGAs, and brokers. It helps teams scale revenue-driving phone calls with natural, conversational AI that sounds just like a real person.
Ready to see how it all comes together? Let’s start by looking at the everyday tasks automation can take on.
What tasks can AI automate in insurance?
AI is taking on more of the repetitive, time-heavy tasks that once filled an insurance agent’s day. It’s not replacing people. It’s empowering them to focus on what truly drives results: clients and growth.
By automating routine tasks, AI is changing how insurance teams operate, making everything faster, simpler, and more efficient.
Let’s look at how an average day for an insurance agent has changed with AI in the mix.
Let’s look at what’s already happening.
Routine and administrative tasks
AI now handles claims processing, data entry, and policy issuance in seconds. Smart automation tools extract information from forms, verify data, and even issue policies automatically.
These steps once took hours; now they happen in seconds. Agents spend less time on forms and more time helping clients make better coverage decisions.
Chatbots and virtual assistants
Digital helpers are now everywhere. Companies like Lemonade use AI chatbot Maya to guide customers through claims and quotes 24/7.
Strada takes this a step further with AI phone agents that manage live calls: collecting claim details, updating policies, and even triggering follow-up workflows automatically. It brings the same instant, friendly experience to voice conversations that others offer through chat.
Here’s what that looks like in action:
Answers calls instantly → no hold times or transfers.
Handles renewals and claims → collects info and updates records in real time.
Follows up automatically → sends texts, emails, or triggers tasks after each call.
These tools provide quick, consistent help with no waiting and no need for escalation.
AI-powered fraud detection
Fraud detection is another big win for AI. Machine learning models flag suspicious patterns, while natural language processing (NLP) scans claim notes for unusual behavior.
This combination spots fraud early and keeps the process fair for honest customers.
Underwriting and predictive analytics
AI is changing underwriting, too. Daido Life Insurance in Japan uses AI-driven models to assess risk and automate approvals.
PwC uses AI for image-based damage detection, helping adjusters estimate repairs accurately within minutes.
Predictive analytics also helps agents anticipate which clients are likely to renew or lapse, so they can act early.
Smarter customer support
AI tools now handle after-hours calls and chat. Services like Sonant AI act as virtual receptionists, answering questions and scheduling follow-ups when no one’s in the office.
Strada’s AI phone agents take this further by managing 24/7 inbound and outbound calls for renewals, policy servicing, and first notice of loss. There’s zero hold time, and human agents are free from constant phone interruptions.
Here’s a quick snapshot of the most common AI automation tasks in insurance and how they lighten the workload for agents.
Task type | Example | Impact on agent workload |
Claims processing | Lemonade’s AI chatbot | Cuts claim handling time from hours to minutes |
Data entry & Policy issuance | Automated form processing | Removes manual admin tasks |
Fraud detection | Pattern recognition, NLP scanning | Reduces false claims, speeds payouts |
Underwriting | Daido Life’s AI models | Faster, more accurate approvals |
Sonant AI, Strada phone agents | 24/7 service, zero hold time |
So, can AI replace insurance agents? No, it enhances them. By taking over routine tasks, it allows you to focus on empathy, advising, and building trust, which are things no machine can truly replicate.
Next, let’s take a closer look at where humans still can’t be replaced and why that matters.
Where does human expertise remain essential?
Even with smarter AI tools, human expertise still plays a vital role in insurance. Some things simply can’t be automated and that’s where agents shine.
When clients face emotional or complex situations, like health issues, major accidents, or the loss of a loved one, they don’t want a chatbot.
They want someone who listens, understands, and guides them through difficult decisions. That empathy builds trust and strengthens long-term relationships. It’s what keeps clients loyal, even as automation becomes more common.
AI can process thousands of data points, but it can’t grasp the full context of a client’s life. Agents use their judgment and experience to provide nuanced advice that fits each person’s goals and circumstances.
Choosing the right coverage or planning for the future requires more than numbers; it requires care, intuition, and perspective.
That means:
Listening closely to what customers really need, not just what they ask for.
Understanding life changes that affect coverage, like a new home or growing family.
Balancing options to find the right mix of protection and affordability.
Human agents also play a vital role in oversight and ethics. Regulatory compliance, fairness, and transparency demand human supervision.
Even companies like MetLife, which use advanced AI compliance tools, rely on people to ensure responsible decision-making.
And when crises hit, during a complex claim or disputed payout, it’s the human advocate who steps up, communicates clearly, and stands by the client’s side. No algorithm can replicate that.
That’s why AI works best as a partner, not a replacement. And let’s visualize how AI and humans split the work in a typical agency today.
Platforms like Strada prove this balance in action. Its AI-driven phone agents handle 24/7 calls for renewals, FNOL, and policy servicing. This lets human agents focus on meaningful conversations, strategic planning, and client relationships that drive long-term success.
AI may streamline processes, but it’s people who bring empathy, trust, and heart to the business of insurance.
So, how are insurance agents’ workflows evolving with automation? Let’s take a closer look.
How are insurance agents’ roles evolving with AI?
You’ve probably noticed how fast AI is transforming insurance.
It’s not about whether AI agents replace SaaS systems; it’s about how humans and technology work better together. The role of the insurance agent is shifting, not shrinking.
From transactions to trusted advisors
AI now handles much of the routine work, such as claims, data entry, and renewals, freeing agents to do what machines can’t. Instead of processing policies, you’re helping clients make sense of their options, plan for the future, and feel confident about their choices.
Agents are moving from transaction processors to trusted advisors. You’re focusing on complex case guidance, building relationships, supporting clients during crises, and offering long-term strategic planning.
These high-value tasks put empathy and expertise front and center again.
Turning AI insights into personalized service
Agents now use AI to analyze data from usage-based insurance and health monitoring devices, giving them real-time insights into clients’ needs.
For instance, Pula’s microinsurance platform uses AI to offer tailored protection for small farmers, showing how powerful personalization can be.
This shift means you can anticipate needs rather than react to problems. You’ll see more agents using AI-powered dashboards to spot trends, personalize offers, and improve client satisfaction.
The rise of hybrid models
Many insurers are adopting hybrid models that blend AI automation with the human touch.
Sonant’s conversational AI shows how this works: it greets customers, answers simple questions, and seamlessly transfers complex ones to live agents. That mix keeps experiences efficient and personal.
Strada’s conversational AI takes it a step further. It gives real-time call outcome intelligence, so you know exactly what was discussed and what action to take next.
Here’s what that means in practice:
Summarizes every call → captures key points, requests, and outcomes automatically.
Identifies next steps → flags follow-ups like renewals, payments, or document requests.
Updates systems instantly → syncs notes and actions to your CRM or AMS in real time.
Notifies the right people → alerts agents or teams so nothing falls through the cracks.
That insight empowers you to deliver more informed, thoughtful client engagement in every interaction.
To thrive alongside AI, you need to sharpen a new set of skills. It’s not just about understanding policies anymore; it’s about understanding data. Agents must learn to interpret AI-driven insights and use them to shape smarter, more personalized advice.
Equally important are the human skills that machines can’t replace. Strong communication, emotional intelligence, and adaptability help you connect on a deeper level and use new tools with confidence.
Combining these strengths with AI support turns agents into true partners in protection, not just policy sellers.
Here’s how insurance roles are evolving, from the old ways of working to the new, AI-empowered approach.
Before AI | With AI | Key skills needed |
Manual data entry and quotes | Advisory and consultative services | Communication, empathy |
Reactive customer service | Proactive, data-informed support | Analytical thinking |
Limited personalization | Tailored coverage using AI insights | Data literacy |
Isolated tasks | Hybrid teamwork with AI tools | Tech adaptability |
Matter-of-factly, AI doesn’t replace agents; it enhances them. With automation handling the busywork, you get more time to connect, advise, and create real value for every client.
Next, let’s explore the key tools driving this change and how they’re being used across the insurance industry.
What are current practical examples and tools driving change?
AI isn’t a distant promise anymore. It’s here, reshaping how insurance professionals work every day.
From handling customer calls to automating back-office work, these tools show how AI agents replace SaaS systems and even help businesses scale faster than before.
But, it’s not about AI to replace call center agents, it’s about enhancing how agents work and freeing them from repetitive tasks. Let’s look at what’s actually driving change right now.
Smarter AI platforms and agentic systems
Next-generation platforms like Strada are redefining how insurance operations work. Instead of just automating tasks, Strada’s agentic AI listens, reasons, and acts, turning every customer interaction into instant business action.
It combines automation, natural language understanding, and predictive analytics to help insurers manage claims, renewals, and service requests faster and more accurately.
For example, Strada’s AI can handle an incoming call or message, identify the intent (like a renewal, policy change, or claim update), and route it to the correct workflow automatically.
No menus, no hold times. Just intelligent, instant action.
Automation that simplifies work
Strada doesn’t just handle calls. It transforms the entire workflow behind them. Its Workflows engine automatically performs post-call actions like updating CRMs, assigning adjusters, sending documents, or triggering billing reminders.
Agents no longer waste hours on manual updates or follow-ups. Instead, Strada summarizes every interaction, records outcomes, and syncs data across systems in real time.
The result: faster operations, fewer errors, and more time for agents to focus on advising clients instead of managing admin work.
In short, Strada turns busywork into background work — done automatically and accurately.
Lead qualification and retention made easier
Strada also helps insurance teams capture and convert more opportunities. Its AI phone agents qualify inbound leads automatically, identify intent and readiness to buy, and connect serious prospects directly to available producers.
No waiting, no drop-offs. Just warm, ready-to-convert conversations.
Beyond lead capture, Strada helps with renewal and retention workflows too. When a policyholder mentions shopping around or being unsure, Strada flags the account as at-risk, triggers a save task, and alerts the retention team immediately.
This kind of automation turns call centers into smart engagement hubs, where every call counts and every opportunity gets the right attention, automatically.
Financial workflows and reconciliation
Finance teams are also getting AI help. Applied Systems’ Automated Statements tool handles commission reconciliation automatically, matching carrier statements to policies in seconds.
Here’s what AI can do for finance teams in practice:
Match payments automatically → reconcile carrier statements with the correct policies.
Spot discrepancies early → flag missing commissions or mismatched amounts instantly.
Generate reports fast → create summaries for accounting and compliance in minutes.
Reduce manual data entry → pull data directly from billing and policy systems.
Improve accuracy → eliminate human errors common in large spreadsheets.
What used to take hours of spreadsheet work now happens with a click.
Conversational AI for better experiences
Strada’s conversational AI is transforming how insurers handle customer interactions, especially over the phone, where most service still happens.
Its AI voice agents answer calls instantly, provide accurate information, and handle requests like renewals, claim updates, or document requests without hold times. When empathy or complex decisions are needed, Strada automatically transfers the call to a live agent – complete with full context and call notes, so nothing has to be repeated.
Here’s what that means in practice:
24/7 coverage → customers can reach support anytime, even after hours.
Instant resolution → common requests are handled in minutes, not hours.
Smooth handoff → agents step in seamlessly when human judgment is required.
Better experience → no waiting, no repetition, just fast and friendly service.
With Strada, insurers deliver consistent, high-quality conversations at scale — giving every caller the same attentive experience, day or night.
AI is transforming insurance. These tools show that automation and human expertise can work side by side to deliver smarter service, stronger relationships, and a more connected insurance experience.
Of course, automation isn’t without its flaws. Let’s take a closer look at the most common challenges.
What challenges and limitations does AI face in insurance?
AI is powerful, but it’s not perfect. While automation and analytics improve efficiency, there are still areas where technology falls short and humans shine.
Here’s a simple breakdown of common challenges plus practical ways to avoid them and tools that can help.
Challenge | How to avoid It | Tools that can help |
Lack of emotional intelligence | Use AI for routine steps, but route sensitive claims (like life or health) to human agents who can show empathy. | Strada’s voice AI with seamless human handoff; CRM systems with call routing rules. |
Trust gap with customers or agents | Be transparent about when and how AI is used; pair AI insights with human validation. | Strada’s insurance-trained AI with compliance tools; AI dashboards for review before sending. |
Complex or nuanced cases | Set clear rules for when AI should escalate to humans; use automation for prep work, not final judgment. | Strada Workflows with escalation triggers; rule-based automation in AMS/CRM systems. |
Regulatory and ethical oversight | Keep humans in the loop for decisions affecting compliance, fairness, or payouts; maintain audit trails. | Strada’s built-in evaluation tools; compliance monitoring software like LogicGate or Resolver. |
Technical integration issues | Start small, integrate AI with one workflow at a time, and provide staff training before scaling. | Strada’s low-code integration tools; Zapier, Make, or API connectors for AMS/CRM sync. |
Data quality and consistency | Clean and standardize data before automation; set up validation rules for accuracy. | Data prep tools like Talend or OpenRefine; Strada’s structured workflow automation. |
AI can make insurance faster, more accurate, and more proactive. But only when it works with people, not instead of them.
Next, let’s explore how to implement automation in your workflow effectively and with real impact.
How can insurance agencies implement AI successfully?
AI adoption in insurance doesn’t have to be complicated. Success comes from taking small, strategic steps, not trying to automate everything at once.
Let’s explore how to confidently adopt AI while keeping humans at the heart of every interaction.
Start small and target real pain points
The best place to begin is by automating repetitive, time-consuming tasks that don’t require human judgment. Focus on clear areas where AI can make an immediate impact:
After-hours calls → use AI receptionists or voice bots to capture client needs 24/7.
Lead routing → automatically direct new leads to the right agent or department.
Renewal reminders → set up smart notifications that reach clients at the perfect time.
This approach saves hours each week and shows quick wins that build team confidence.
Train and empower your agents
AI works best when your agents know how to use it. Invest in training that explains both its strengths and limits.
Show agents how AI can handle background work while they take the lead on empathy and advice. The more confident your team feels, the faster adoption sticks.
Balance automation with the human touch
Define clear rules for when AI handles a task and when a person should step in. Establishing strong AI-human handoff protocols ensures clients always feel heard.
Pair that with clear communication: let customers know AI supports your team but never replaces it. That transparency builds trust and sets expectations early.
Measure what really matters
Efficiency is important, but it’s not everything.
Track metrics that show how AI is improving your business overall:
Customer satisfaction and loyalty
Agent time allocation and workload balance
Client retention and renewals
Revenue per agent
These numbers reveal the true impact of AI on both performance and relationships, not just speed.
Adopt proven, scalable tools
Choose platforms that simplify adoption. Strada is a great example, a turnkey voice AI solution that requires no engineering lift.
It’s built for scalability, data security (SOC 2 Type 2 compliance, data isolation), and transparency so stakeholders can trust every interaction.
Strada’s design makes it easy to integrate AI into daily workflows while maintaining total human oversight.
When implemented thoughtfully, AI doesn’t replace people; it amplifies them. Start small, train your team, measure results, and choose the right tools.
That’s how you’ll turn automation into a true advantage for your agency in 2025 and beyond.
So, how can humans and AI work together most effectively? Let’s explore some of the best approaches.
What frameworks and methodologies support effective human-AI collaboration in insurance?
The future of insurance isn’t about humans or AI; it’s about how both work together. Agencies that master this balance will deliver faster service, smarter insights, and a better customer experience.
Let’s look at the key frameworks and methods helping agencies do this well.
Approach | What it means | How it works in practice | Key benefits |
Human-in-the-Loop (HITL) | Keeps people involved in every stage of AI decision-making. | Agents review and approve AI-generated decisions for claims, underwriting, or service. Their feedback trains AI continuously to improve accuracy. | - Builds trust and accountability - Ensures sensitive cases get human review - Makes AI smarter and safer over time |
Adaptive AI | AI that learns and adjusts based on human input and client behavior. | Agents can edit AI-generated messages, quotes, or renewals. The system learns these adjustments to personalize future recommendations. | - Delivers personalized service at scale - Makes AI responses more human and relevant - Strengthens customer relationships |
Agile adoption | Gradual rollout of AI in small, manageable phases. | Start with one workflow (e.g., lead routing or renewals), test results, gather feedback, then expand to other areas. | - Reduces disruption - Builds confidence and team buy-in - Enables faster, lower-risk implementation |
Explainable AI (XAI) | Makes AI decisions transparent and understandable. | Shows why a recommendation or decision was made (for example, risk scores or claim outcomes) in clear terms for agents and customers. | - Increases transparency and compliance - Builds customer confidence - Supports fair, ethical decision-making |
Change management | Focuses on the human side of AI adoption. | Communicate early about AI goals, train staff before launch, and involve them in testing to build trust and reduce resistance. | - Improves team adoption - Reduces hesitation and confusion - Ensures long-term success and collaboration |
When humans and AI work together effectively, everyone wins. The technology becomes a trusted partner, not a replacement, making the entire insurance experience smarter, faster, and more human than ever.
Now you know what’s coming in 2025 and beyond and how to work hand in hand with AI. It’s the perfect time to bring automation into your workflow. But before that, let’s do a quick recap.
What’s the smartest first step toward AI-assisted insurance?
So, will AI replace insurance agents? The answer is no. It’ll transform them. Instead of replacing humans, AI is pushing agents toward higher-value, customer-centric roles focused on strategy, relationships, and trust.
AI is transforming agents into higher-value, customer-centric advisors. You’ll spend less time on admin work and more time building relationships, solving complex problems, and guiding clients through life’s biggest decisions.
The secret is balance. When you blend human intelligence with AI efficiency, you get the best of both worlds: accuracy, speed, and empathy working in sync.
Agencies that embrace this shift strategically will gain a clear competitive edge and deliver experiences that customers genuinely trust.
That’s where Strada leads the way. It’s a leading AI phone agent solution built for insurance carriers, MGAs, and brokers who want to scale efficiently without losing the human touch.
Strada’s conversational AI handles calls, renewals, and servicing instantly, while Strada Workflows automate the follow-up tasks, like quote recovery and payment reminders, so your team can focus on real connections.
The future of insurance isn’t human or AI; it’s human and AI. Together, they’ll reshape the industry into something faster, fairer, and more connected than ever.
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Carriers, MGAs, and brokers scale revenue-driving phone calls with Strada's conversational AI platform.
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Phone AI agents for insurance distribution
© 2025 Strada API, Inc.
Phone AI agents for insurance distribution
© 2025 Strada API, Inc.
Phone AI agents for insurance distribution
© 2025 Strada API, Inc.