The emergence of ChatGPT-powered insurance apps has stoked concerns over the long-term impacts of artificial intelligence on brokers and the broader industry. 

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. 

And Spanish insurtech Tuio has developed an artificial intelligence app that can help with insurance purchases. The app has been approved by Open AI – the owner of ChatGPT. 

“The way of taking out insurance has just taken a historic leap,” Tuio says on LinkedIn. 

“From 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.” 

Shares of global broking giants including WTW and Gallagher have tumbled as investors reacted to the apps’ possible impact on brokers’ roles as intermediaries. 

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’ impact on insurers. 

“Definitely [the ChatGPT apps] have caused the sell-off,” Morningstar analyst Nathan Zaia told insuranceNEWS.com.au. 

“Even insurers’ [stocks] got sold off. There are question marks around how much of the business can just be taken away by these AI models. 

“There’s a possibility some of their business would be at risk, especially the more commoditised types, small business insurance coverage. But even then, there’s still a big question mark around how accurate the information will be, how comfortable people will be using it. 

“So I think it’s 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.” 

Jarden equity analysts say Steadfast and AUB are positioned to meet the AI challenge. 

“Within 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,” they say in a research note. 

“We 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.” 

Jarden estimates earnings at risk for Steadfast is about 35%, and 16% for AUB. 

“We emphasise this represents earnings at risk, not earnings loss due to AI,” the research note says. 

Jarden says the estimate for Steadfast is “driven 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.”