Cybersecurity has become a top priority for all digital systems, particularly in strategic sectors such as insurance that store vast amounts of personal data. The financial and insurance industries remain among the prime targets of cyberattacks that can lead to serious data breaches and reputational damage.

Deputy Minister of Communication and Digital Affairs Nezar Patria warned that in the era of artificial intelligence (AI), the misuse of personal data in the insurance industry is becoming increasingly concerning.

According to Nezar, insurance companies are beginning to leverage AI technology to analyze premium determinations and claim approvals, as well as to enhance customer service efficiency.

“Automation of claim processes and customer service using AI technology can indeed improve efficiency. However, there are challenges we must anticipate. AI systems require massive volumes of personal data for model training, which can increase the risk of data leaks and misuse,” he stated during his keynote speech at the iLearn Seminar themed “Reinforcing Insurance Governance Through Data Management and PDP Alignment” held at the Movenpick Hotel, Central Jakarta, on Tuesday (November 11, 2025).

Data Bias and Accuracy Remain Critical Concerns

Nezar also reminded industry players that the results produced by AI-based systems are not always accurate. Errors or biases in the training data can lead to unfair or misleading outcomes.

This highlights the importance of ensuring high-quality, well-managed data in AI-driven decision-making processes within the insurance industry.

Regulatory Framework Strengthened Under Personal Data Protection Law

Indonesia’s commitment to data security is reflected in Law No. 27 of 2022 on Personal Data Protection (PDP Law), which serves as the foundation for national data privacy governance.

Nezar explained that the government is currently finalizing derivative regulations in the form of a Presidential Regulation to strengthen the implementation framework.

He encouraged insurance companies to understand the fundamental concepts of personal data protection—especially the rights of data subjects and the responsibilities of data controllers.

“We also encourage strict monitoring and enforcement of the PDP Law, including mechanisms for handling data breaches, investigations, and administrative sanctions for violations,” Nezar emphasized.

Data Protection as a Core Corporate Value

Beyond compliance, Nezar urged the insurance industry to embed data protection into its corporate culture.

“We should not see personal data protection merely as a legal obligation but as part of our core values—a competitive advantage that distinguishes Indonesia’s insurance industry on the global stage,” he concluded.

PHOTO: KEMKOMDIGI

This article was created with AI assistance.