Jefferies says AI unlikely to disrupt commercial P&C brokers
Investing.com — Jefferies analysts said artificial intelligence is unlikely to disintermediate commercial property and casualty brokers beyond micro, small, and lower middle market commercial segments, according to a research note.
The firm said complexity, advisory services, and data gaps protect upper middle market, large, specialty, and reinsurance brokerage operations.
Jefferies views AI as an efficiency lever in the near term rather than a revenue disruptor. The firm said underwriting capabilities will likely be improved through AI adoption.
However, Jefferies noted that competition will likely erode any loss ratio advantages over time as AI tools become more widely adopted across the industry.
The firm said broker disruption fears are overblown for most of its covered brokers in the commercial property and casualty insurance sector.
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