Insurance runs on forms, rules and data, and you can now get a quote online in minutes without talking to anyone. That makes insurance agents, underwriters and claims staff ask whether AI will finish the job that comparison websites started. The data shows a split: agents who advise clients are projected to grow slowly, while underwriting and claims work faces clearer pressure from automation.
The short answer: AI is unlikely to replace insurance agents as a whole on current evidence, but it is changing the industry unevenly. The ILO's 2025 index places insurance representatives in its significant-exposure band. The US Bureau of Labor Statistics projects 3 percent growth for insurance sales agents from 2025 to 2035, but declines for insurance underwriters and for claims adjusters, appraisers, examiners and investigators, with automated software named as a reason. Projections are estimates, not guarantees.
How exposed insurance jobs are
The International Labour Organization scores occupations' tasks from 0 (cannot be automated with generative AI) to 1 (could be done without a human operator), and groups them into gradients from 1 to 4, with 4 the most exposed; below them sit minimal exposure and not exposed (ILO Working Paper 140, 2025).
| Occupation (ISCO-08) | ILO category | Mean task score (0 to 1) |
|---|---|---|
| Statistical, Finance and Insurance Clerks | Gradient 4 (highest) | 0.64 |
| Financial and Investment Advisers | Gradient 3 | 0.57 |
| Insurance Representatives | Gradient 3 | 0.53 |
| Valuers and Loss Assessors | Gradient 2 | 0.45 |
Insurance clerks, who process forms and records, are in the highest band. Insurance representatives, a group that covers agents, brokers and underwriters, are in gradient 3. Loss assessors, who inspect and judge real damage, score lower.
The job outlook
| Occupation | Projected change 2025 to 2035 | Openings a year |
|---|---|---|
| Insurance sales agents | Grow 3% | About 43,100 |
| Insurance underwriters | Decline 4% | About 6,800 |
| Claims adjusters, appraisers, examiners and investigators | Decline 6% | About 21,600 |
For sales agents, the BLS says demand is expected to continue because insurers depend on a steady stream of new customers. Many clients research and buy insurance online, which reduces demand, but agents will still be needed to help clients understand their options and choose a policy. For underwriters, it says automated underwriting software lets workers process applications quickly, reducing the need for underwriters, and that more underwriting decisions are expected to be made automatically. For claims work, it says technology is expected to automate some tasks, for example software that can evaluate photographs of damaged property and calculate an estimated claim amount, and that growing AI capabilities will make workers more productive.
Where AI is already doing the work
- Producing quotes and comparing policies.
- Answering routine questions about coverage and billing.
- Drafting renewal letters, emails and policy summaries.
- Pre-filling applications and checking them for missing information.
- Sorting claims and estimating simple damage from photos.
Work that stays human
- Advice: helping clients understand their options and pick the right cover, which the BLS names as the reason agents are still needed.
- Complex risks: businesses, unusual properties and cases that do not fit the standard model.
- Claims that need judgment: disputed, large or suspicious claims, and inspecting real damage.
- Checking AI output: AI can produce confident but wrong output, which NIST calls confabulation (NIST AI 600-1). A wrong statement about coverage can mislead a client. See checking AI output.
- Trust after a loss: people want a person when something has gone wrong.
- Client data care: insurance involves sensitive personal and health data. See AI agents and personal data.
Where the job is heading
For agents, AI is taking over quoting and paperwork, and the job shifts toward advice, relationships and complex cases. Underwriting and claims are moving toward people who handle exceptions, review automated decisions and take responsibility for them, a typical human-in-the-loop pattern. The BLS notes that insurance sales agents must have a license in the states where they work (BLS). Roles built mainly on processing standard forms face the most pressure.
More on this: will AI replace financial advisors?, will AI replace customer service jobs? and will AI take my job?
Pay and how to get in
The US Bureau of Labor Statistics puts the median annual pay for insurance sales agents at $62,280 in May 2025, against $50,980 for all workers. Across the 3 BLS occupations this page covers, median pay ranges from $62,280 to $81,370. The typical education needed to enter differs between the 3 BLS occupations this page covers. See how this job compares in AI exposure by pay and AI exposure by education level.
Questions and answers
Will AI replace insurance agents?
Not on current evidence. The BLS projects 3 percent US growth for insurance sales agents from 2025 to 2035, because agents are still needed to help clients understand options and choose policies.
How exposed are insurance jobs to AI?
The ILO places insurance representatives in gradient 3, with a mean task score of 0.53. Insurance clerks are in the highest gradient, at 0.64.
Will AI replace insurance underwriters?
Underwriting faces more pressure. The BLS projects a 4 percent decline, saying automated underwriting software reduces the need for underwriters.
Will AI replace claims adjusters?
The BLS projects a 6 percent decline for claims adjusters, appraisers, examiners and investigators, noting software that can estimate damage from photos. Complex and disputed claims still need people.
Should I still choose insurance as a career?
Sales and advice roles are projected to grow slowly, while underwriting and claims roles are projected to shrink. People who handle complex cases and client relationships are best placed.