The S&P 500 Insurance Index reached an all-time high as investors rotated out of AI-exposed technology stocks and into defensive sectors. Earlier this month, US insurance broker stocks dropped 3.9% in a single session amid fears of AI disruption to the industry. However, the broader insurance sector is absorbing AI rather than being disrupted by it: projections suggest AI adoption could deliver efficiency gains of 15-22% for life insurers by 2028, and the global AI-in-insurance market is expected to grow at a compound annual growth rate exceeding 30% through 2035. This rotation signals cooling risk appetite among institutional investors, which could impact crypto markets that still trade as high-beta risk assets for most institutional allocators.
Source: Read the original article
