AI tools trigger concerns of disruption, US insurance broker stocks suffer heavy losses on Monday.

The release of an artificial intelligence tool by the private online insurance shopping platform Insurify has sparked concerns about industry disruption, leading to a sharp drop in U.S. insurance broker stocks on Monday. The S&P 500 insurance index closed down 3.9%, marking the largest single-day decline since October of last year. Insurance broker company Willis Towers performed the worst, closing down 12%, marking its most brutal trading day since November of 2008. Arthur J Gallagher closely followed, dropping 9.9%. Insurance analyst Matthew Palazola stated that insurance broker stocks are taking a hit, as the market may be concerned about Insurify's new tool and Anthropic's new artificial intelligence tool. These applications may pose a threat to some of the consulting businesses of insurance broker companies, although they could be seen as efficiency enhancers rather than existential threats.