Gallagher: The Trusted Adviser Is More Important Today Because Of Ai

Gallagher used its fourth quarter earnings call to push back on the idea that artificial intelligence will replace insurance brokers, especially in small commercial lines. During the Q&A, CEO Pat Gallagher said he has heard the same fears before. “I addressed the same thing when we had the dawn of the internet. Goodbye intermediaries. This is all going to be done by me at home on my computer. And that showed just not to be true,” he said, arguing that clients still want human advice when decisions get complex.

Gallagher was blunt about the limits of AI in real world insurance buying. He said small business owners do not want to rely on automated advice when they are dealing with real risks. “Do you think they’ve got the confidence to pick their insurance online, even if ChatGPT says, this is the way to go? It’s just not happening,” he said. He added that AI can confuse customers rather than replace advisors, saying, “The trusted adviser is more important today because of AI than it was before AI because everybody is confused.”

CFO Doug Howell echoed that view and framed AI as a tool, not a threat. He said Gallagher expects to use AI to support producers, not cut them out. “If there is a product that can be sold with AI, we will likely be the ones that can put it out there… and then have a producer do the final piece of it,” Howell said. He also pointed out that selling a policy is only the first step and that service and claims still require people

Where AI does matter, according to management, is speed and cost in the back office. Howell said the company is already seeing gains, especially in claims. “AI is going to help us automate a lot of that… we’re going to be able to deliver a better, faster and less expensive service offering,” he said, pointing to results at Gallagher Bassett.

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