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Cost and Compliance Hurdles Could Slow AI Insurance Shopping Agents

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Cost and Compliance Hurdles Could Slow AI Insurance Shopping Agents

Picture this. You ask an artificial intelligence assistant to find you cheaper car insurance, then you go to bed. By morning, the AI agent has checked a dozen companies and lined up a better deal.

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While that future is getting closer, the insurance industry has several reasons to pump the brakes.

Investors got nervous this fall when Meta launched Muse, its personal AI agent. The worry was simple. If AI can shop for insurance on its own, who needs the websites and agents that connect buyers with insurers today? Stocks of those companies have fallen about 15% on average since early September.

A new report from investment firm William Blair suggests those fears may be overblown. The firm’s analysts recently spoke with David Seider, chief commercial officer of The Zebra, an online insurance marketplace and agency. The Oct. 8 discussion was part of William Blair’s “On Risk” series, which looks at how artificial intelligence is changing the insurance business.

The first hurdle is money. A rough price estimate is cheap for an insurer to produce. A real quote that a customer can buy is not. Insurers often must purchase outside data, such as driving records, before they can offer a firm price. That data can cost up to $20 per quote.

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