How ChatGPT Boosts the Need for Insurance Agents

• October 28, 2026

By Chris Champlin

While artificial intelligence (AI) apps make insurance information more accessible and purchasing more convenient, it can also reinforce the value of independent agents, particularly with complex commercial coverage, because protecting a business often involves decisions that benefit from an agent’s expertise.

Workers compensation coverage frequently involves complexities that can have significant financial consequences if overlooked. Workers comp requirements vary by state and can add complexity for businesses operating across state lines. Employee classifications can also carry significant financial consequences. Also, workers comp is only one piece of a business’s overall protection. Agents see the whole account and can help owners think through how all of their coverage fits together.

For example, a contractor who classifies an office manager under the same workers comp code as construction workers may be paying more than necessary—although eligibility for a clerical classification depends on the respective state, the rating bureau and how employees’ actual duties and payroll are documented. Conversely, incorrectly identifying an employee as an independent contractor can lead to back premiums, penalties and potential liability for uncovered claims, depending on state law.

These are nuances business owners may not always think to ask about. Even when AI explains the intricacies of different policies, the answers can be dense or lengthy. Most business owners don’t have time to become insurance experts. They want the speed and convenience they have become accustomed to and they also want confidence they’re making the right decisions to protect their livelihoods. Agents and technology together can deliver both.

Rather than viewing AI-powered insurance apps as a threat, agents can use them alongside their own expertise to demonstrate their value while embracing technology to deliver the service customers expect. Here are three ways to make the independent agent value proposition clearer than ever:

1) Turn AI research into a conversation. Business owners already use AI to research everything from hiring practices to financial decisions. Encourage them to do the same with insurance and then bring their findings to you. Review the information together, identify assumptions that need context or details that may be missing, and explain where general information may not fit their specific situation. General-purpose AI tools can offer helpful background, but they don’t know a particular business’s operations, payroll or state requirements.

A business owner researching workers comp, for instance, might decide to exclude themselves from coverage without understanding the implications, which vary by state. They may not realize workers comp provides more than medical benefits. It can also replace a portion of lost income if an injury prevents them from working. An agent can explain what the owner may be giving up and the potential financial consequences, allowing them to make a more informed decision.

2) Demonstrate the value beyond the initial purchase. Insurance isn’t a once-and-done transaction, and policyholders benefit from ongoing support throughout the policy lifecycle. A business might hire employees, expand into another state or add a new service, potentially affecting its insurance needs and premiums. Regular client check-ins can uncover these changes before they become problems.

Workers comp policies are generally subject to a premium audit after a policy term ends, which business owners may be unfamiliar with navigating. Agents can guide them through the process, from preparing payroll records to reviewing classifications so clients know what to expect.

Claims present another opportunity for agents to demonstrate their value. When a loss occurs, business owners frequently need more than information about their coverage. They need someone to guide them through the claims process, keep them informed and work with the carrier’s claims team to keep things moving smoothly.

Automation and AI tools make ongoing engagement easier and can help reduce manual effort. Agency management systems (AMS) and email platforms can trigger reminders for renewals, audits and periodic reviews, while AI can draft personalized communications, which agents should review for accuracy and compliance before sending.

3) Use AI to make your expertise more accessible. Agents can leverage AI to deliver the fast, convenient service customers increasingly expect, including conducting preliminary comparisons of lengthy policies, flagging differences in limits, deductibles, exclusions and other provisions for agents to review and verify. Agents should use tools approved by their agency and avoid entering client’s personally identifiable information or non-public information, such as policy or payroll data, into public AI platforms.

AI can also transform agents’ expertise into educational content. An agent who regularly answers questions about workers comp classifications could develop a series of client emails, blog posts or short guides explaining common mistakes and when business owners should seek advice. Of course, agents should always review this content for accuracy and compliance with applicable advertising rules before publishing.

Agents should also explore technology offered by their carriers. Prioritize carriers investing in AMS integrations and digital quoting platforms that eliminate duplicate data entry and accelerate access to quotes and information.

Expertise, judgment and ongoing guidance remain essential to protecting a business, and AI-powered insurance apps can work alongside them. The strongest outcomes come when technology and agent expertise work together, giving agents new opportunities to show how they protect clients beyond simply selling a policy.

Chris Champlin is senior vice president, sales and customer experience at EMPLOYERS®,  a leading provider of workers compensation insurance solutions for America’s small and mid-sized businesses.

Copyright© 2026 EMPLOYERS. All rights reserved. EMPLOYERS® is a registered trademark of EIG Services, Inc. Workers’ compensation insurance and services are offered through Employers Preferred Insurance Company, Employers Compensation Insurance Company, and Employers Assurance Company. EIG Services, Inc. (in California, dba EIG Insurance Services, CA License No. 0189699) is an affiliated agency. Not all insurers do business in all jurisdictions. Please visit employers.com for additional information. All information above is general information that should not be construed as legal or tax advice. All insurance coverage is subject to policy terms, laws, and regulations that vary by state.