Japan's Sumitomo Life considers using AI to assist sales agents

Sumitomo Life Insurance is considering the use of digital technologies, including generative AI, to assist its sales agents, said president Yukinori Takada.

Recent industry scandals have highlighted the need for Japanese insurers to review how they support agents, especially regarding employee loan practices.

Takada, who also chairs the Life Insurance Association of Japan, described the current period as a significant transition for insurer-agent relationships.

Takada made these remarks in an interview held in Bellevue, Washington, where he was attending a meeting with the heads of two of Sumitomo Life’s overseas subsidiaries.

Japanese life insurers have traditionally sent employees to assist sales agents, such as banks, in selling insurance products.

🔗 Source: Jiji Press

🧠 Food for thought

Implications, context, and why it matters.

Japan tightens rules on secondments, insurers turn to AI

In September 2024, the General Insurance Association of Japan (GIAJ) banned loaning staff to partner sales teams, and the Financial Services Agency (FSA) plans tougher oversight 1.
Recent scandals involved secondees leaking rival customer data and misusing bank information, including a Nippon Life secondee at MUFG Bank, Japan’s largest bank 2.
Nippon Life, Meiji Yasuda Life Insurance, and Sumitomo Life may end secondments as early as April 2026 2. Nippon Life is negotiating to remove or reassign its 51 loaned staff 1.
Sumitomo Life will weigh generative AI and other tools to support agents while avoiding secondment risks 3.

Insurtech (insurance technology) can target Japan’s life market without secondments

Direct written premiums (insurers’ premium revenue before reinsurance) could reach $371.2 billion by 2029, up from $275.8 billion in 2024 at a 4.7% CAGR 4.
Large insurers are testing AI, and CEOs launched multi-year programs to modernize systems built 50 to 60 years ago 5.
Tokio Marine has partnered with OpenAI to develop AI agents 6. U.S. startup Lazarus AI is entering Japan to speed up life insurance operations using tech first built for U.S. intelligence analysis 7.
Compliant agent enablement tools (software that helps bank and agency sales staff sell and service policies) can replace secondments 2. Tools that handle handwriting recognition and suitability documentation (records showing a product fits a customer’s needs) plus audit trails can serve Japan’s four largest insurers and their bancassurance networks (banks distributing insurance products) 2.