U.S. insurance brokers steady after slumping on AI disruption risks

Marsh & McLennan Companies

10/02/2026 11:28

* Shares of top U.S. insurance brokers and underwriters steady in premarket trading after Monday's slump on fears about AI disruption in the sector

** Online insurance platform Insurify released an AI-powered comparison tool built on ChatGPT, sparking a 3.9% drop in S&P 500 insurance index .SPXIN on Monday; shares of insurance brokers Willis Tower Watson WTW.O and Arthut J Gallagher closed down 12.1% and 9.8%, respectively

** Most U.S. insurance stocks were flat on Tuesday, while European insurance stocks tumbled

** "We think genuine disruption is likely to take some time - at least 24 months," said J.P. Morgan analysts, adding that the fall in stock prices are perhaps overdone especially given the recent declines

** Morningstar says commercial clients are likely to be cautious about adopting new AI tools until they've proven reliable over a long period, making it hard for such solutions to gain meaningful traction anytime soon

** Piper Sandler calls it a "potential buying opportunity for the insurance brokers"

** AI will make the process easier and cheaper for consumers, but won't significantly shift market share given the market's maturity, regulation and existing customer preferences, adds Piper

** .SPXIN down ~5% YTD

 (Reporting by Kanishka Ajmera in Bengaluru)

 ((mail to: Kanishka.Ajmera@thomsonreuters.com))