If your clients are relying on artificial intelligence (AI) searches to inform themselves about insurance, rather than professional advice from an insurance broker, that can be a risky proposition, warns Rates.ca.
Anecdotally, the rate aggregator has seen an uptick in customers asking questions, making assumptions, or writing emails using AI or AI-generated information, says Rates.ca insurance expert and licensed insurance broker Daniel Ivans. And while AI can be a useful starting point for research, it’s important for the client to check their source of information.
“AI often produces incorrect or out-of-context insurance information, or insurance information from different geographies,” Ivans says. “So, an Ontario driver may get advice for insurance in Nebraska. Or a homeowner in Alberta may get insurance advice that is applicable in Halifax.”
It’s important to note Canadian auto insurance policies vary widely according to geography, Ivans says. In addition to public versus private auto insurance models, “legalities, policy structures, endorsements and claims processes will differ according to each province. What applies to drivers in Ontario will not necessarily apply for drivers in Nova Scotia.”
Similarly, home insurance advice is often based on local geographic and weather conditions. While home insurance policies don’t vary by province in the same way auto policies do, brokers’ advice is often based on the specifics of the home’s locality. For example, hail is a major risk in Alberta, but not as much in Ontario. Some localities also experience higher rates of break-ins or flooding, which can affect risk.
As well, brokers can offer tailored advice based on specific driver and home profiles. Auto and home insurance premiums and recommended endorsements can vary from person to person and from home to home. Brokers can provide detailed, tailored advice based on a variety of individual factors such as driving history, age, address, etc.
Although AI can compile and summarize information quickly, it often does not discern between reputable sources of information and unconfirmed sources of information, Rates.ca warns. When using it to search for insurance information, clients should remember to check the source of the information provided and whether it’s reputable. Then check in with a broker before making any policy decisions.
Brokers use of AI
Meanwhile, Canadian P&C brokers are using AI as a core capability to place commercial and personal cyber and tech coverage, according to a new survey from BOXX Insurance.
BOXX told CU the survey involved 92 brokers in Ontario. It conducted primary research among Ontario-based brokers offering tech and cyber insurance to understand AI usage and how brokers are engaging with AI tools in their day-to-day activities.
The findings reveal AI is now embedded within everyday broker workflows, helping them simplify complex cyber risks, discover emerging threats, and deliver faster, clearer, and more tailored advice to clients. All cyber and tech brokers (100%) surveyed reported using AI in their day-to-day work at least multiple times per day.
Among other key insights from the research:
In many cases, systems behave in line with their intended design and outcomes; yet still lead to allegations, disputes, or regulatory scrutiny.
- 52% of brokers in the study say they use AI to explore trends, 47% to compare information, and 35% rely on AI tools or chatbots to stay informed on market shifts and emerging risks
- Despite the surge in AI usage, Canadian brokers aren’t abandoning traditional wisdom. Brokers access sources like cybersecurity company reports (63%), industry publications and trade media (53%), cyber incident databases or data platforms (45%), social media and professional networks (43%), and professional associations or broker networks (41%) to understand industry trends, emerging risks and market developments.
- ChatGPT is the dominant AI platform, used by 60% of brokers, far ahead of Google Gemini (12%) and Perplexity (7%)
- Enhancing underwriting and risk assessment is seen as AI’s highest-value application (33%), followed by threat intelligence and real-time monitoring (15%), broker decision support (13%), market analysis (8%), and training and knowledge-sharing (7%)
- Over half of brokers use AI to explore trends (52%), draft content (50%), compare information (47%) and simplify complex material through summaries or explanations (39%).
Like Canadian brokers, the vast majority (94%) of Canadian CEOs are using AI to some extent, according to PwC Canada’s 29th Annual CEO Survey of 133 Canadian CEOs. But only 29% of Canadian CEOs report scaling AI across their business, compared to 43% globally, PwC Canada says in a release. “The winners will be those who act decisively now to embed AI enterprise-wide and unlock new revenue streams.”
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