Shares in Australian insurance companies experienced a downturn on Tuesday, spurred by concerns over potential disruption following the launch of an artificial intelligence tool by Insurify, a privately held online insurance shopping platform based in the US. The AI-powered app triggered a sell-off in US insurance broker stocks, with the negative sentiment spilling over into the Australian market.
Among the most affected were major players in the Australian insurance sector. Insurance Australia Group (IAG) saw its shares fall by 3.3 per cent. Suncorp experienced a decline of 2.4 per cent, while QBE Insurance Group recorded a more significant drop of 3.7 per cent.
Insurify’s new app utilises ChatGPT to provide auto insurance rate comparisons. It analyses details such as vehicle information, credit history, and driving records to offer tailored quotes. The company, which provides users with a platform to compare and buy insurance policies, announced the launch of the app on February 3. This move has heightened investor anxiety about the potential for AI to transform various industries.
Broader market anxieties regarding the transformative impact of AI have been amplified recently. Last week saw investor concern heightened by the release of new automation tools from Anthropic. These tools are designed to automate work across sectors from legal services and data analysis to financial research, further fuelling fears of widespread industry upheaval.
