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.
