AI-driven insurance apps are not expected to end brokers’ role as risk advisers, industry players and analysts say.

Fears over artificial intelligence’s impact were stoked this week after ChatGPT-approved apps were launched, triggering a stock sell-off among listed global insurance brokerages. 

Australia’s Steadfast and AUB were affected too, as investors reacted to the development of AI tools capable of performing some broking functions, such as offering customers personalised quotes. 

The ChatGPT apps announced this week by a US insurance agent and a Spanish insurtech apply only to personal lines.

UBS equity analysts say with AI tools “offering significant improvements in insurance product comparability, the role of brokers is being challenged.

“While it is difficult to be definitive this early, we believe longer-term risks of disintermediation for brokers relate largely to the more homogenous insurance risks such as personal lines and the smaller end of commercial bizpack.”

UBS adds that “larger and more complex risks will still require broker expertise, in our view, particularly given the lack of standardisation of coverages and terms and conditions across insurer policies. We view AI-related risks as most likely to impact less-complex risk at the smaller end of SME, where intermediated business may realign to direct channels, which AI will enable.”

Jarden equity analysts say the current legal and regulatory framework should make fully autonomous AI advice unlikely short-term.

The framework “favours ‘human in the loop’ deployment inside licensed intermediaries rather than pure robo‑brokers. While this could change over time, we expect governments to be cautious, particularly where personal lines/small enterprises are concerned.”

Brokers still have an edge over machines, Jarden says. “Mid‑sized and larger SMEs – and many niche sectors – require bespoke wordings and negotiated placement. These relationships are still driven by broker expertise more than price comparison, and underwriting agencies are largely insulated as product manufacturers supplying all distribution channels.”

Bruce Chiene Insurance Brokers director Scott Hardiman says concerns about technology disrupting jobs are not new.

“In the near term, I don’t see ChatGPT‑style quoting apps having a meaningful impact on the traditional broking segment, not initially at least,” he told insuranceNEWS.com.au.

“They sit far more naturally in the direct market, and I think it will expand to some SME products with simple profiles.

“The reasons clients use brokers haven’t changed: critical thinking, technical expertise, advocacy, relationships and access to markets that aren’t available direct.

“Those fundamentals don’t disappear with new technology.”