As the insurance quote journey moves into the LLM space, many MGAs, insurance companies, and brokers will be wondering what this means for insurance distribution. We demystify the potential implications and how insurance providers can ensure they’re well-positioned for an LLM-driven future.
Since the Spanish digital insurer Tuio launched the first ChatGPT app for insurance quotes in February 2026, the insurance world has been abuzz with opinions on how LLMs will change the future of insurance distribution.
Tuio was quickly followed by several other apps, including Insurify, MoneySuperMarket, and, most recently, Aviva in the UK, showing big insurance brands are betting on LLMs being a major change in how consumers buy insurance.
But how significant are these developments, really?
On the one hand, the ChatGPT apps simply offer a new interface for an interaction that price comparison sites already do well, offering topline quotes for simple insurance policies. A recent equity research report from Barclays on MONY Group (the owners of MoneySupermarket) claimed that LLMs are more likely to change how customers access price comparison websites than replace them altogether.
At the same time, there are concerns about how quickly the technology could develop and eat into the role of price comparison sites and brokers. A report from Bank of America estimates that $15bn of the insurance industry is at risk from disintermediation by AI. And, while the majority of this will be the most straightforward policies, it argues that LLMs could also cause price deflation of more complex cover, as businesses do more of their own research before approaching a specialist.
So, what does it mean for insurers, MGAs, and brokers?
As with everything AI-related, nobody can truly predict the impact on consumer behaviour or what will come next. But the speed at which the technology is evolving means MGAs, insurers, and brokers should start preparing for a world where LLMs are, at the very least, another distribution channel. What should they be thinking about now?
1. Be discoverable inside LLMs
As MoneySuperMarket and Insurify concluded, if ChatGPT is going to be part of the customer journey, it’s important to use it to your advantage. That could mean formal integration via an app, or simply employing AI optimisation techniques, to ensure your website is easily searchable and accessible for LLMs. That spans both technical onsite changes, as well as ensuring content is written to answer popular LLM queries.
“Most current LLM models can already access your website, read your product information, and even calculate indicative prices — without any technical integration,” says Risto Rossar, Founder and CEO of Insly. “So, the most important near-term action is ensuring your product information is clear, well-structured, and LLM-readable. Being “findable” in AI-native search is the new SEO priority. Formal API integrations are a second step, not a prerequisite.”
As well as being accessible, insurance providers and their tech partners should also be thinking about how to control what LLMs can access on their site to ensure the most relevant products and information are targeted at the right customers. This is an area that Socrates Systems is prioritising.
“Many MGAs and insurance companies don’t want AI scraping absolutely all their schemes and products, so they may choose to have an AI entry point on their website, directing the LLM to the right product,” explains Jody Brooks, Managing Director, Socrates Systems. “As all products are different, with diverse question sets and declarations, it’s important to ensure that when a client gets a recommendation via ChatGPT, that it is the right one for them.”
2. Use AI to make your employees better at what they do
But, while generating quotes via ChatGPT potentially brings greater convenience to the consumer, insurance providers shouldn’t let this distract them from the real AI productivity gains, which will come from streamlining back-end processes. The upshot of this is the ability to offer more comprehensive and personal advice, more accurate pricing, and ultimately compete with the LLMs more effectively going forward.
“The greatest near-term impact of AI in insurance will be felt inside insurance companies, MGAs, and brokerages — not in consumer-facing chat interfaces,” explains Rosser. “Underwriters, claims handlers, and brokers using AI tools will dedicate more time to consultative, relationship-driven work and less time to manual data gathering, document review, and repetitive correspondence.”
There is also value to be had from utilising an LLM-style interface in companies’ existing customer journeys and workflows to improve the customer experience that way.
“The value will come from integrating AI into our system, not from consumers purchasing directly from ChatGPT,” says Brooks. “If AI is within our own systems, we can control and manage what it’s doing. That, for me, is the exciting part, where we can transform question sets into a more natural conversation within our own ecosystem.”
AI can also add genuine value by helping customers interpret complex insurance terms and conditions, analysing coverage against their specific needs, and highlighting differences between policies hidden in lengthy documents. This is another area where the right AI tools can empower insurance professionals and their customers with insights that go beyond price comparison.
3. Robust AI infrastructure
Meeting customers where they are is the cornerstone of effective distribution, whether on price comparison websites, ChatGPT, or other channels such as WhatsApp or email. But to do that effectively, insurance providers need the back-end infrastructure to link up with those platforms seamlessly, and then process quotes, policy documents, and claims quickly, with clear communication throughout. Legacy software will become a severe hindrance to doing that, meaning investing in an AI-enabled technology backbone is a vital first step.
“For brokers, MGAs, and insurers, trying to build or integrate with AI tools, relying on outdated platforms makes things much harder,” explains Rossar. “Insurtech providers are best placed to do this as we have access to the data and we understand the workflows. If your technology provider is not proactively developing AI tools for you, that should be a strategic concern.”
Not the holy grail… but a new incentive to leverage AI
LLM distribution may not live up to the hype, but it’s another reminder that MGAs, insurers, and brokers can no longer ignore AI. By automating the most repetitive tasks across the insurance lifecycle, AI can free insurance professionals to focus on more strategic work, accelerate growth, and improve customer satisfaction. That will drive a true AI revolution in insurance – not just create a new interface.
Insly’s new AI layer, Nora, enables MGAs and insurers to integrate AI into their existing workflows, offering a set of specialised skills that can be customised to the exact needs of each customer. Its modular approach enables customers to mix and match where Nora can best add value, by removing specific pain points and bottlenecks in the insurance lifecycle. Small steps with big gains, plus minimum disruption to the business.
