Shares of major insurance brokers fell sharply after OpenAI approved what it called the first insurance app on ChatGPT, intensifying fears that AI could bypass traditional distribution. Willis Towers Watson dropped 13%, Arthur J. Gallagher fell 9.4%, Aon slid 8.5%, Ryan Specialty and Brown & Brown declined 8% and 7%, and Marsh & McLennan lost 7%. Insurer AIG eased 2%. The Spanish digital insurer Tuio, using WaniWani’s infrastructure, can now gather customer information via conversation and deliver real-time, personalized home insurance quotes from regulated carriers within ChatGPT, with purchasing functionality to follow. The move marks a first for direct insurance distribution inside a major AI platform and sharpened investor concerns about broker disintermediation. Some market participants questioned the breadth of the selloff, noting the app’s current focus on home policies and arguing that commercial and specialty lines—core to many brokers—are harder to automate. Still, the development underscores rising competitive risk from generative AI across insurance sales and service.
Insurance broker shares slide as OpenAI greenlights first ChatGPT-based insurance app
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