AI platforms spark fear among insurers and brokers

The recent approval of two insurance applications by American AI company OpenAI, now integrated into ChatGPT, has triggered a sharp decline in the shares of several insurers and brokers.

Spanish digital insurer Tuio has developed an application that enables users to obtain a personalized home insurance quote without leaving the ChatGPT interface. The platform will soon allow users to underwrite a policy directly through ChatGPT, bypassing traditional underwriting forms and procedures.

Meanwhile, American insurance aggregator Insurify has introduced a ChatGPT-based solution that allows users to search, compare, and explore motor insurance policies without leaving the AI interface.

According to OpenAI, a dozen other AI-based insurance projects are currently under review.

The rapid emergence of these tools is raising alarms among market players, who fear that AI platforms could reduce the need for brokers and intermediaries. Shares of major brokers, including Aon, WTW, and Gallagher, as well as insurers such as AXA and Aviva, have fallen sharply in both European and U.S. markets.

This decline reflects growing concern over the medium and long-term implications of these digital channels for the insurance industry.