The selloff in US insurance broker stocks on Monday, driven by fears that a newly launched artificial intelligence tool could disrupt the industry, may have gone too far, according to Wall Street analysts.
Shares across the group tumbled after privately held online insurance marketplace Insurify unveiled a new application that uses ChatGPT to compare auto insurance rates based on factors including vehicle details, credit history and driving records. By Tuesday, however, analysts played down the competitive threat, arguing the pullback had created an entry point.
“Investors seem concerned that AI will take market share from insurance brokers,” Piper Sandler ...
