“Why not go fully paperless?” It’s a fair question in 2025 - after all, many industries have moved entirely to e-signatures. But in Indonesia’s insurance sector, the answer is rooted in regulation, trust, and operational reality.
Under OJK 36/2024, a fully electronic sales process can shift a product into the “digital insurer” category, triggering additional licensing requirements and higher capital buffers. For many insurers, especially those with large agency networks, this creates complexity and slows transformation.
There’s also the human factor: customers buying life or education-savings policies often want the reassurance of a “real” signature — whether signed across the table or witnessed over a video call. That physical act still carries weight in building trust, especially outside major urban centres.
This is where Agent-Guided Digital Distribution (AGDD) comes in.
AGDD delivers near-paperless efficiency without crossing the line into full e-signature territory:
- Customers fill out a Smart Form on their phone or laptop.
- Data is validated instantly, reducing errors and rework.
- The system generates a locked PDF application, emailed to both agent and customer.
- The agent schedules a short video call to explain the policy and witness the wet signature.
- A courier picks up the signed document for underwriting — satisfying OJK’s “traditional” definition.
The Payoff
- Faster cycles — from ~10 days to ~4 days on average.
- Lower costs — around 40% less paper-handling expense per policy.
- Happier customers — a smooth, digital-first experience without losing the personal touch.
Why Insurers Are Saying Yes
AGDD’s hybrid approach gives insurers the best of both worlds:
- Compliance with current regulations and capital requirements.
- Digital reach to underserved regions, without sacrificing agent involvement.
- A smoother, more modern customer journey that still respects traditional safeguards.
In short, “paperless… almost” isn’t a compromise — it’s a deliberate strategy. By meeting customers and regulators where they are today, AGDD creates the bridge to where the industry can go tomorrow.
Image by Freepik
