Using AI and ChatGPT to get Your Life Insurance

Using AI and ChatGPT to get Your Life Insurance

We are receiving more and more enquiries from people using artificial intelligence for life insurance. This can be a really useful way for people who are not used to the insurance world, to put together a clear idea of what they want. It can help an adviser to figure out what your goals are, which is one of the first steps in providing advice.

But, there are also some issues that we are starting to see as an industry, that mean this might not work well for you. I am going to cover the main issues that we are finding with people using AI and ChatGPT to place their insurance enquiry.

Advice versus non-advice

We are a regulated advice firm and that means that when we provide quotations and arrange insurance, we need to demonstrate that we have gotten to know our client and have their best interests at heart.

When we get an enquiry through to us that has been written by AI, it is often very direct and what someone is wanting, not necessarily what they need. As an example, we might get an email with the following

• I want decreasing term life insurance only of £275,000 over 33 years for my capital and repayment mortgage
• It must have guaranteed premiums
• It must include waiver of premium
• I want you to provide me the pricing for each of the insurers that you use

This kind of enquiry works well for what is known as a non-advised firm. This type of firm will do what we sometimes refer to as ‘order taking’. You tell them what you want, they don’t provide advice as to whether it is right for you, and you get some quotes.

For us as an advice firm, we are not allowed to do that. We have to speak with you by email, phone or over videocall to make sure that the quotations that we give you are for insurances that are actually useful to you.

We would get a very stern slap on our wrists (as a minimum!) if we didn’t follow what our financial regulator requires of an advised firm.

This means that if you contact us with an enquiry like this, we will get in touch to double check if you want advice or not. If you don’t want advice we will signpost you to insurers or other brokers that can help you. If you do want advice we can put you in contact with one of our advisers.

Times that AI and ChatGPT are useful

Using AI to help you put together what you think you need for insurance, is great, but for an advised process you need to be prepared to engage with an adviser. So, use it to get your initial thoughts together, to figure out what questions you might have about how the insurance works, and go from there.

Being able to clearly understand the insurance that you are applying for is essential. Some people with the following circumstances might find AI and ChatGPT as a useful tool to build that knowledge:

• People that are living with autism
• People that are dyslexic
• For people where english is their second language

There are lots of situations like this. But do remember that AI is using information that it sources from the internet, and it will get this from really good sources and bad ones too.

Using multiple brokers

You should absolutely shop around when you’re looking for insurance, to make sure that you get the best insurance. There are loads of brokers in the UK that can help you, including us. 

We have found with some AI and ChatGPT enquiries that people are sending the same requests to multiple firms. You can definitely do that, but we will not complete research until you have explored other options first. 

One of the key reasons for this is that if we approach the same insurers as another broker firm with your details, the insurers can get quite frustrated at us with the double up of work. This is causing issues across the industry and affecting service levels, which everyone wants to avoid, we want getting insurance to be as stress free and quick for you as possible.

Moving with the times

There is no doubt that AI is here to stay and that firms, including Cura, need to find ways to support people using this approach. If you need to use AI to communicate with us, that is absolutely fine.

We just ask that you be prepared that we must follow our regulatory processes and hopefully they work well for you.

Our award winning advisers arrange life insurance, critical illness cover and income protection insurance every day and know the best ways to protect you.

Get in touch with us for a no obligation quotation today.