Deputy Minister of Communication and Digital Affairs Nezar Patria urged the insurance industry to adopt a culture of personal data protection.
Especially regarding the rights of data subjects and the obligations of personal data controllers, amidst the increasing potential for abuse due to the use of artificial intelligence (AI).
In his statement in Jakarta on Wednesday, Nezar explained that the insurance industry is currently starting to utilize AI technology to analyze premium determinations and claim approvals, as well as acting as agents to serve customers.
However, he warned that the insurance industry is often a prime target for cyberattacks, which can potentially lead to personal data leaks and damage a company's reputation.
"Automating claims processes and customer service using AI technology can also increase efficiency. However, there are challenges we need to anticipate. AI systems require massive amounts of personal data for model training, which potentially increases the risk of data breaches and misuse," said Nezar.
He also warned that the results of AI calculations aren't always accurate. Errors in the data used to train the AI can bias the results.
Regulations regarding personal data protection are stipulated in Law Number 27 of 2022 concerning Personal Data Protection (PDP Law) and are currently being drafted as derivative regulations in the form of a Presidential Regulation.