You may have heard that online insurance agent Insurify launched a ChatGPT app to allow consumers to compare and shop for insurance. What followed was a stock market crash.
Following the announcement, U.S. insurance broker stocks took a dive on fears about the industry facing disruption.
The S&P 500 Insurance index closed down 3.9% on Feb. 9, after news of the Insurify app broke on Feb. 3. This marked the largest drop on the S&P 500 since October. According to a Bloomberg article, insurance broker Willis Towers Watson PLC was the worst performer in the group, closing 12% lower and suffering its worst trading session since November 2008. Arthur J Gallagher & Co. followed with a 9.9% decline and Aon PLC fell 9.3%.
Insurify said the app is the first insurance app in OpenAI’s directory.
Within ChatGPT, users can access the Insurify app to see tailored rate estimates specific to their unique driver profile, including factors such as location, vehicle, age, credit, driving history, and coverage needs. It allows shoppers to compare options from top insurance companies in their area side by side; view key information about each insurer; and weigh trade-offs across price, customer service, coverage options, discounts, policy transparency, and overall value.
When consumers are ready to purchase, they can continue the shopping experience on Insurify–a digital insurance agent licensed in all 50 states and Washington, D.C.–to finalize coverage and buy the policy.
“Shopping for car insurance has traditionally been time-consuming, confusing, and frustrating for many drivers,” said Snejina Zacharia, founder and CEO of Insurify, in a statement. “With our new ChatGPT app, we’re redefining the insurance shopping experience by making it feel as simple as having a conversation. Drivers can ask questions in plain language, explore personalized quotes, and review real customer feedback, all in one place.”
Zacharia said that people in general are using AI to make everyday decisions, and the app is the “natural next step” in the insurance buying process.
Could AI applications like Insurify’s ChatGPT app be a cause for concern for consulting businesses such as the insurance broker world, or just a giant step into the industry’s future?
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