You may have heard that online insurance agency Insurify has launched a ChatGPT app to help consumers compare and buy insurance. What followed was a stock market crash.
Following the announcement, U.S. insurance broker stocks plunged on concerns that the industry was facing disruption.
After news of the Insurify app broke on February 3, the S&P 500 insurance index closed down 3.9% on February 9. This was the biggest decline for the S&P 500 index since October. Insurance broker Willis Towers Watson & Co. was the worst performer in the group, closing 12% lower, its worst performance since November 2008, according to a Bloomberg article. This was followed by Arthur J. Gallagher & Company, which fell 9.9%, and Aon Inc., which fell 9.3%.
Insurify says the app is the first insurance app in OpenAI’s directory.
Within ChatGPT, users can access the Insurify app to see tailored pricing quotes specific to their unique driver profile, including factors such as location, vehicle, age, credit, driving history, and coverage needs. This allows shoppers to compare options from the top insurance companies in their area side by side. View important information about each insurance company. Weigh trade-offs between price, customer service, coverage options, discounts, policy transparency, and overall value.
When consumers are ready to purchase, they can continue their shopping experience with Insurify, a digital insurance agency licensed in all 50 states and Washington, D.C., to finalize coverage and purchase a policy.
“Buying auto insurance has traditionally been time-consuming, confusing and frustrating for many drivers,” Sunejna Zakaria, founder and CEO of Insurify, said in a statement. “With our new ChatGPT app, we’re redefining the insurance shopping experience by making it feel as easy as having a conversation. Drivers can ask questions in plain language, get personalized quotes, and see feedback from real customers, all in one place.”
Zakaria said people are generally using AI in their day-to-day decisions, and apps are a “natural next step” in the insurance buying process.
Are AI applications like Insurify’s ChatGPT app a cause for concern for consulting businesses such as the insurance broker world, or are they just a big step into the future of the industry?
Topics
Insurtech Data Driven Artificial Intelligence Technology
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