European Insurer Stocks Tumble as AI-Powered Tool Triggers Selloff Across Insurance Sector
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European insurer stocks slide after US brokers selloff on AI concerns
MILAN, Feb 10 - European insurance stocks fell sharply on Tuesday as investors reacted to a selloff in U.S. insurance brokers, triggered by concerns that new artificial intelligence tools could accelerate disruption in the sector. Shares in top U.S. brokers Willis Towers Watson (WTW.O), opens new tab, Aon (AON.N), opens new tab and Arthur J. Gallagher (AJG.N), opens new tab slumped between 9% and 12% on Monday after online insurance platform Insurify released an AI‑powered comparison tool built on ChatGPT. A trader said the U.S. market lagged the UK in adopting price‑comparison sites though added that investors still underestimated the risks AI could pose to European insurers. Europe's STOXX 600 Insurance (.SXIP), opens new tab fell as much as 1.9% by 0837 GMT, the biggest sector decliner in the region, while the broader STOXX 600 (.STOXX), opens new tab slipped 0.1%. Among the steepest fallers were Hiscox (HSX.L), opens new tab, Mapfre (MAP.MC), opens new tab, Admiral (ADML.L), opens new tab, Aviva (AV.L), opens new tab and AXA (AXAF.PA), opens new tab, all down between 2% and 3%. The S&P 500 Insurance Index (.SPXIN), opens new tab fell 3.9% on Monday, the biggest drop since October 2025. Reporting by Danilo Masoni, editing by Alun John Our Standards: The Thomson Reuters Trust Principles., opens new tab
[2]
European insurer stocks slide after US brokers selloff on AI concerns
MILAN, Feb 10 - European insurance stocks fell sharply on Tuesday as investors reacted to a selloff in U.S. insurance brokers, triggered by concerns that new artificial intelligence tools could accelerate disruption in the sector. Shares in top U.S. brokers Willis Towers Watson, Aon and Arthur J. Gallagher slumped between 9% and 12% on Monday after online insurance platform Insurify released an AI-powered comparison tool built on ChatGPT. A trader said the U.S. market lagged the UK in adopting price-comparison sites though added that investors still underestimated the risks AI could pose to European insurers.Europe's STOXX 600 Insurance fell as much as 1.9% by 0837 GMT, the biggest sector decliner in the region, while the broader STOXX 600 slipped 0.1%. Among the steepest fallers were Hiscox, Mapfre, Admiral, Aviva and AXA, all down between 2% and 3%. The S&P 500 Insurance Index fell 3.9% on Monday, the biggest drop since October 2025. (Reporting by Danilo Masoni, editing by Alun John )
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European insurance stocks fell sharply on Tuesday following a steep selloff in US insurance brokers after Insurify launched an AI-powered comparison tool built on ChatGPT. Major brokers like Willis Towers Watson, Aon, and Arthur J. Gallagher saw shares plunge 9-12% on Monday, triggering investor concerns about accelerating disruption within the insurance sector and sparking a broader market downturn.
AI-Powered Comparison Tool Sparks Insurance Sector Turmoil
European insurer stocks experienced a sharp decline on Tuesday as investor concerns about artificial intelligence disruption rippled across the Atlantic. The market downturn followed Monday's dramatic selloff in US insurance brokers, triggered when online insurance platform Insurify released an AI-powered comparison tool built on ChatGPT
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. The launch sent shockwaves through the insurance sector, with shares in top US brokers Willis Towers Watson, Aon, and Arthur J. Gallagher slumping between 9% and 12% on Monday2
. The S&P 500 Insurance Index fell 3.9% on Monday, marking the biggest drop since October 20251
.
Source: Reuters
European Insurance Stocks Declined Amid Contagion Fears
The impact of new artificial intelligence tools quickly spread to European markets, where insurers faced their own reckoning. Europe's STOXX 600 Insurance fell as much as 1.9% by 0837 GMT, making it the biggest sector decliner in the region while the broader STOXX 600 slipped just 0.1%. Among the steepest fallers were Hiscox, Mapfre, Admiral, Aviva, and AXA, all down between 2% and 3%
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. The stock slide reflects growing anxiety that AI concerns could fundamentally reshape how consumers purchase insurance products and interact with traditional insurance brokers.Related Stories
Market Underestimates AI Disruption Risks
A trader noted that while the US market lagged the UK in adopting price-comparison sites, investors still underestimated the risks AI could pose to European insurers. This observation highlights a critical gap between current market valuations and the potential for disruption within the insurance sector. The rapid development of AI-powered tools like Insurify's ChatGPT-based platform suggests that traditional intermediaries may face accelerated pressure as consumers gain access to more sophisticated, automated comparison and purchasing tools. For insurance brokers and insurers alike, the challenge extends beyond simple price comparison to encompass personalized recommendations, policy analysis, and customer service functions that AI systems can increasingly handle autonomously. The speed at which these technologies are evolving means that companies must adapt quickly or risk losing market share to more agile, technology-driven competitors who can offer faster, cheaper, and more transparent services to consumers seeking insurance coverage.
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