The emergence of ChatGPT-powered insurance apps has stoked concerns over the long-term impacts of artificial intelligence on brokers and the broader industry.\u00a0<\/p>\n
Insurify, a US online insurance agent and comparator, announced last night it has launched a ChatGPT app that can help shoppers research, browse and compare motor quotes.\u00a0<\/p>\n
And Spanish insurtech Tuio has developed an artificial intelligence app that can help with insurance purchases. The app has been approved by Open AI \u2013 the owner of ChatGPT.\u00a0<\/p>\n
\u201cThe way of taking out insurance has just taken a historic leap,\u201d Tuio says on LinkedIn.\u00a0<\/p>\n
\u201cFrom today, anyone can get a real and personalised home insurance quote on ChatGPT, without endless forms, without calls and without leaving the chat. AI assistants are becoming a real new insurance discovery and contracting channel.\u201d\u00a0<\/p>\n
Shares of global broking giants including WTW and Gallagher have tumbled as investors reacted to the apps\u2019 possible impact on brokers\u2019 roles as intermediaries.\u00a0<\/p>\n
Steadfast and AUB have been caught up in the sell-off, with their stocks down as much as 6% and 10% respectively today. The stock fallout has also spread to IAG, Suncorp and QBE as investors weighed the apps\u2019 impact on insurers.\u00a0<\/p>\n
\u201cDefinitely [the ChatGPT apps] have caused the sell-off,\u201d Morningstar analyst Nathan Zaia told insuranceNEWS.com.au.\u00a0<\/p>\n
\u201cEven insurers\u2019 [stocks] got sold off. There are question marks around how much of the business can just be taken away by these AI models.\u00a0<\/p>\n
\u201cThere\u2019s a possibility some of their business would be at risk, especially the more commoditised types, small business insurance coverage. But even then, there\u2019s still a big question mark around how accurate the information will be, how comfortable people will be using it.\u00a0<\/p>\n
\u201cSo I think it\u2019s a bit early to assume this is going to mean a material loss of business for brokers. This is an early reaction to something that we will see the impact of over many years.\u201d\u00a0<\/p>\n
Jarden equity analysts say Steadfast and AUB are positioned to meet the AI challenge.\u00a0<\/p>\n
\u201cWithin broking, we expect AI disruption risk to be most pronounced in the retail broking segment, with agency and wholesale broking more resilient due to higher complexity,\u201d they say in a research note.\u00a0<\/p>\n
\u201cWe see retail and small enterprise risks structurally more exposed to AI threats as products are relatively standardised, purchase decisions are more price\/convenience driven, and digital distribution has low barriers to entry.\u201d\u00a0<\/p>\n
Jarden estimates earnings at risk for Steadfast is about 35%, and 16% for AUB.\u00a0<\/p>\n
\u201cWe emphasise this represents earnings at risk, not earnings loss due to AI,\u201d the research note says.\u00a0<\/p>\n
Jarden says the estimate for Steadfast is \u201cdriven primarily by [its] higher exposure to personal lines and small enterprise business. Nonetheless, we stress that this represents theoretical earnings at risk over a five-plus-year horizon.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"The emergence of ChatGPT-powered insurance apps has stoked concerns over the long-term impacts of artificial intelligence on brokers…\n","protected":false},"author":2,"featured_media":186918,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[8786,4955,64,63,59617,99,18958,31359,13634,17846,119144,9392,4631,17573,3389,8176,31043,10299,322,1685,44,89588,12587,88810],"class_list":["post-470881","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-advice","tag-articles","tag-au","tag-australia","tag-brokers","tag-business","tag-commercial","tag-corporate","tag-financial-services","tag-free","tag-industry-updates","tag-information","tag-insurance","tag-insurtech","tag-international","tag-issues","tag-liability","tag-life-insurance","tag-local","tag-media","tag-news","tag-regulatory","tag-small-business","tag-sme"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/470881","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=470881"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/470881\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/186918"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=470881"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=470881"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=470881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}