Investing.com — Major insurance broker stocks plummeted Monday amid investor concerns that artificial intelligence could disrupt traditional insurance distribution channels. The selloff followed reports from Reinsurance News and others that OpenAI approved the first AI insurance app on ChatGPT, built by Spanish digital insurer Tuio.
experienced the steepest decline, with shares falling 13%. dropped 9.4%, while shed 8.5%. and Brown & Brown (NYSE:BRO) fell 8% and 7% respectively, with Marsh & McLennan (NYSE:MRSH) also down 7%. Insurer saw a more modest decline of 2%.
The market reaction came after OpenAI announced that Tuio’s app, powered by WaniWani’s AI distribution infrastructure, allows ChatGPT users to receive personalized home insurance quotes directly through conversation, with purchasing capabilities coming soon. This marks the first time an insurance provider can distribute products and offer quotes directly within an AI platform.
According to OpenAI, the new capability removes traditional friction points in insurance purchasing by eliminating forms, calls, and intermediaries. Tuio’s AI app collects relevant information through natural conversation and returns personalized quotes from regulated carriers in real time.
Some investors expressed confusion about the market reaction, questioning why commercial insurance brokers were so heavily impacted when the current application focuses on home insurance. Some argued that insurance brokers dealing with specialty products might be better insulated due to the complexity of those offerings.
