U.S. insurance broker stocks were hammered on Monday as the launch of an artificial intelligence tool from a privately held online insurance shopping platform reassured fears about the industry facing disruption.
The S&P 500 insurance index closed down 3.9 percent in its biggest decline since October. Insurance broker Willis Towers Watson plc was the worst performer among the group, down 12 percent and suffering its worst trading session since November 2008. Arthur J. Gallagher & Co was followed by a 9.9 percent decline and Avon plc shed 9.3 percent.
“Insurance brokers are surrendering the stock,” said Matthew Plazola, insurance analyst at Bloomberg Intelligence, noting, “There may be concerns about the new underwriting tool and Entropic’s new AI tools.”
He added that the requests could pose a threat to some advisory businesses of insurance brokers although we see them as a force multiplier rather than an existential threat. “
Insurify’s app uses ChatGPT to compare auto insurance rates using details about the vehicle, customer credit history, driving record and other inputs. The app launched on February 3, the company said.
Investors’ concern that new AI applications will sweep across many industries in the stock market last week was fueled by the release of new tools from AI startup Anthropic designed to automate tasks related to financial research, legal and data services.
Copyright 2026 Bloomberg.
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The data of insurance agencies is based on artificial intelligence technology
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