The startup that shook up insurance stocks has raised $8M from Seedcamp to change how financial services are distributed — TFN

The company that created the ChatGPT insurance app, which led to a 9% drop in broker stocks, has raised $8 million in seed funding led by Seedcamp.

Waniwani builds technology that lets financial services companies sell directly through AI platforms. Its system powered the event that affected Willis Towers Watson, Aon, and Arthur J. Gallagher on February 9.

This funding comes after Bank of America warned that $15 billion in insurance broker revenue is now at risk because of AI-driven distribution.

On February 9, Willis Towers Watson fell 13% in a single day, its worst decline since 2008, while Aon and Arthur J. Gallagher dropped 8% to 11%. In Europe, the STOXX 600 insurance index fell 1.3%, affecting Hiscox, Aviva, and AXA.

The market saw these changes as a serious threat to the broker model. Goldman Sachs later called the 9% broker sell-off overdone, and stocks partly recovered over the next three weeks. But Bank of America disagreed. In a March note, its analysts said $15 billion in broker revenue is at risk from AI-driven changes. The debate is still ongoing.