10 Oversold Insurance Stocks to Buy According to Analysts

In this article, we will be taking a look at the 10 Oversold Insurance Stocks to Buy According to Analysts.

A crucial shift from “hard market” volatility to a phase of tactical stability characterizes the $3.35 trillion US insurance market as it approaches 2026. The sector is going through a “soft landing,” with overall premium growth predicted to slow to about 4% in 2026, down from 5.5% in 2025, following several years of strong rate hikes. As return on equity (ROE) is expected to remain stable at 10%, supported by rising investment rates reaching an estimated 4.2%, the narrative for investors has evolved from pure price momentum to operational excellence.

The landscape remains bifurcated between property and casualty (P&C). Commercial property is finally offering relief to buyers, with rate reductions in early 2026 ranging from high single digits to more than 20% for well-protected risks. This shift is driven by a surge in market capacity, including several new domestic carriers and new syndicates at Lloyd’s entering the property space. Conversely, the casualty sector remains under pressure due to “social inflation.”

Nuclear verdicts, jury awards exceeding $10 million, have surged in both frequency and severity, with total payouts rising sharply in recent years and median verdicts now exceeding $50 million. These escalating loss-cost pressures are forcing insurers to maintain strict underwriting discipline in lines such as commercial auto and umbrella liability.

In terms of technology, the insurance business will transition from AI experimentation to widespread operational implementation in 2026. As carriers rapidly incorporate AI and automation into underwriting, claims administration, and customer support processes, industry technology investment is expected to reach over $173 billion in 2026, or roughly 7.8% growth. Leading insurers are integrating sophisticated and agentic AI capabilities into their fundamental business processes; among the biggest carriers, automation is predicted to increase expense ratios by about two percentage points. In the meantime, there are specific challenges facing the health insurance industry.

ACA Marketplace rates are expected to increase by a median of almost 18% in 2026 due to increased healthcare consumption, rising medical expenditures, and the expanding use of pricey specialty pharmaceuticals like GLP-1 diabetic and weight-loss pills. The 2026 market offers a mixed picture for strategic investors, with declining property insurance rates coexisting with ongoing liability and healthcare cost pressures.

With that said, let’s now move on to the most oversold stocks.

Our Methodology

For our methodology, we used screeners to identify stocks with an RSI reading of less than 40, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

Here is our list of the 10 oversold insurance stocks to buy according to analysts.

10. Aegon Ltd. (NYSE:AEG)

Aegon Ltd. (NYSE:AEG) is one of the oversold stocks on our list.

TheFly reported on March 5 that Citi increased its price target on AEG to EUR 8.02, up from EUR 7.69, while reiterating a Buy rating on the stock.

Separately, Aegon Ltd. said on March 10 that it has recently increased its footprint in China by establishing Aegon Insurance Asset Management Company (Aegon IAMC), a Shanghai-based, wholly owned insurance asset management company. After completing operational and regulatory preparations and obtaining its insurance asset management license in June 2025, the firm started operations on February 2, 2026.

The launch enables AEG to directly access long-term investment opportunities in China that typically require a dedicated insurance asset management license. These opportunities include investments across sectors such as infrastructure, renewable energy, and other long-duration assets that align with the insurer’s long-term investment strategy and asset-liability management objectives.

Additionally, earlier on February 19, Aegon reported that in 2H 2025, its net result stood at €375 million, which is down from €741 million in 2H 2024 due to non-operating items, while the full-year net result rose 45% to €980 million. Operating results increased 11% in 2H to €858 million and 15% for the year to €1.7 billion, supported by all business units and favorable markets. The corporation’s Valuation equity rose 7% to €9.06 per share. Capital generation reached €711 million in 2H and €1.3 billion full-year, with strong ratios, €388 million free cash flow, and a proposed €0.21 final dividend

Aegon Ltd.is an international financial services company providing life insurance, pensions, retirement, and asset management products to individuals and businesses worldwide.

9. eHealth, Inc. (NASDAQ:EHTH)

eHealth, Inc. (NASDAQ:EHTH) is one of the most oversold insurance stocks on this list.

TheFly reported on March 11 that EHTH saw its price target reduced by RBC Capital to $3 from $9, while the firm reiterated a Sector Perform rating on the stock. Despite the company’s strong fourth-quarter results, the outlook was negatively impacted by lower-than-expected 2026 revenue expectations. The firm claims that conservative forecasts for the next annual enrollment cycle and a major Medicare Advantage insurer’s lower marketing investment are the main causes of the softer forecast.

On February 25, 2026, eHealth, Inc. released its financial results for the fourth quarter and the entire year that ended on December 31, 2025. The company’s Medicare sector performed better than expected, contributing to a 4% year-over-year rise in quarterly sales of $326.2 million. Revenue increased to $554 million for the entire fiscal year, which is likewise a 4% increase over 2024.

The corporation’s GAAP net income for the fourth quarter fell to $87.2 million from $97.5 million a year earlier despite strong top-line growth, mostly as a result of a higher effective tax rate. But because to improved Medicare unit economics and cost control initiatives, adjusted EBITDA increased 10% to $132.9 million.

For 2026, the business projected total revenue between $405 million and $445 million, alongside continued initiatives aimed at improving efficiency and profitability.

eHealth, Inc. operates an online marketplace that helps consumers compare and enroll in Medicare and individual health insurance plans from multiple carriers across the United States.

8. Hippo Holdings Inc. (NYSE:HIPO)

Hippo Holdings Inc. (NYSE:HIPO) is among the most oversold insurance stocks.

TheFly reported on March 6 that HIPO had its price target trimmed by Keefe, Bruyette & Woods to $33 from $34, while the firm reaffirmed a Market Perform rating on the stock. The firm noted that the company’s outlook for 2028 may face challenges as ambitious growth expectations coincide with weakening pricing trends in the market.

On February 25, 2026, Hippo Holdings Inc. released its financial results for the fourth quarter and the entire year 2025. The company reported diluted earnings per share of $0.23 and adjusted diluted EPS of $0.67 for the quarter. The company’s growth and improved underwriting performance contributed to the $6 million quarterly net profits. Compared to a $41 million net loss in 2024, the corporation made $58 million in net income for the entire year.

Moreover, the business’ operational growth was also evident in its premium volumes. The reports state that the gross written premiums reached $288 million in the fourth quarter, marking a 40% increase year over year, which was largely driven by strong growth in Casualty and Commercial Multi-Peril lines. For the full year, gross written premiums climbed 24% to $1.1 billion.

Additionally, the corporation’s profitability metrics improved as well, with the net loss ratio falling to 46% in the quarter and the combined ratio improving to 99%, which reflects better underwriting discipline and lower catastrophe losses.

Hippo Holdings Inc. is a U.S. property insurance company that offers homeowners insurance and related services, using data and technology to price risk and manage policies sold directly and through brokers.

7. Ryan Specialty Holdings, Inc. (NYSE:RYAN)

Ryan Specialty Holdings, Inc. (NYSE:RYAN) is one of the most oversold stocks on this list.

TheFly reported on March 11 that Barclays reduced RYAN’s price target to $45 from $52 and maintained an Overweight rating on the stock. Concerns about AI-related disruption have put pressure on the insurance brokerage industry, according to Barclays, although the current drop seems excessive. According to the firm, current valuations already account for the prospect of slower growth while undervaluing the brokerage model’s durability and the potential for AI to boost margins and increase efficiency rather than hurt the company.

Separately, Ryan Specialty Holdings, Inc. released its fourth-quarter and full-year 2025 results for the period ending December 31, 2025, earlier on February 12. The company’s sales increased 13.2% year over year to $751.2 million in the fourth quarter, according to the reports, thanks to recent acquisitions, greater contingent commissions, and 6.6% organic revenue growth. However, since higher operational and interest costs hampered profitability, net income dropped 26.6% to $31.2 million.

Despite this pressure, adjusted net income climbed by 0.5% to $124 million, and adjusted EBITDAC increased by 2.9% to $222.3 million. The company’s revenue increased by 21.3% to $3.05 billion for the entire year, while adjusted diluted EPS increased by 9.5% to $1.96, indicating sustained growth throughout the company’s specialty insurance platform.

Ryan Specialty Holdings, Inc. is a specialty insurance services firm providing wholesale brokerage, underwriting, and risk management solutions for insurance brokers, agents, and carriers.

6. Willis Towers Watson Public Limited Company (NASDAQ:WTW)

Willis Towers Watson Public Limited Company (NASDAQ:WTW) is among the most oversold stocks to invest in.

TheFly reported on March 11 that WTW was upgraded by Barclays to Equal Weight from Underweight, while the firm also lifted its price target to $341 from $318. Barclays claimed that worries about AI-related disruption have put pressure on the insurance brokerage industry, but it thinks the current deterioration has been exaggerated. The company contended that existing valuations do not adequately represent the strength of the brokerage model and the potential for AI to improve efficiency and margins, even if they already take the risk of slower growth into consideration. Barclays added that WTW’s specialist strategy has been more resilient than anticipated.

Separately, earlier on February 25, Willis Towers Watson Public Limited Company declared that its Board of Directors had approved a regular quarterly cash dividend of $0.96 per share for the quarter that concluded on December 31, 2025. This represents a 4% increase over the previous quarter.

The dividend is expected to be distributed to stockholders listed as of March 31, 2026, on or about April 15, 2026. This action is in line with the company’s continuous capital return strategy and dedication to giving shareholders steady returns while upholding financial discipline and fostering long-term shareholder value.

Willis Towers Watson Public Limited Company is a global advisory, broking, and solutions company providing risk management, insurance brokerage, and human capital consulting services to clients worldwide.

5. Brown & Brown, Inc. (NYSE:BRO)

Brown & Brown, Inc. is among the most oversold stocks.

TheFly reported on March 11 that Barclays lowered BRO’s price target to $80 from $82, while maintaining an Equal Weight rating on the stock. Barclays acknowledged that worries about AI disruption have put pressure on the insurance brokerage industry, but believes the recent fall is overstated. The company thinks that while current valuations already account for slower growth, they undervalue the brokerage business model’s durability and the potential for AI to boost margins and productivity, acting as a benefit rather than a threat.

Separately, earlier on February 17, Brown & Brown, Inc. declared that on February 17, 2026, Brown & Brown Dealer Services (BBDS) purchased the assets of The Protectorate Group Insurance Agency, Inc., doing business as American Adventure Insurance. Along with F&I products and commercial insurance, American Adventure offers dealership-focused insurance solutions for vehicles, such as mobile homes, campers, boats, motorbikes, and more.

Under the direction of Paul Bender, who has over thirty years of expertise, the American Adventure team will join BBDS and go on with operations across the country, reporting to BBDS President Mike Neal. While maintaining the company’s dealer-centric strategy, the acquisition is anticipated to improve BBDS’s capabilities, broaden its product offerings, and provide cutting-edge insurance solutions to its network of dealerships throughout the United States.

Brown & Brown, Inc. is a U.S. insurance brokerage firm providing risk management, insurance, and related consulting services to businesses, individuals, and public entities nationwide.

4. Prudential Financial, Inc. (NYSE:PRU)

Prudential Financial, Inc. (NYSE:PRU) is among the most oversold insurance stocks.

TheFly reported on March 5 that PRU had its price target reduced by TD Cowen to $105 from $113, while the firm maintained a Hold rating on the stock. The adjustment followed an update to the company’s financial model after reviewing the fourth-quarter results, reflecting the firm’s reassessment of PRU’s near-term performance and outlook.

Separately, on March 2, Prudential Financial, Inc. announced the launch of its ActiveIncome insurance overlay for retail managed accounts on Franklin Templeton’s Canvas platform. The solution, which is made available through the FIDx Insurance Overlay marketplace, is intended to assist registered investment advisors in adding protected lifetime income to client portfolios. By using a contingent deferred annuity, investors can secure retirement income while retaining investment flexibility.

By providing an alternative to conventional withdrawal methods and meeting changing investor needs, the technology enables advisers to improve retirement planning techniques. By incorporating this overlay into Canvas, PRU and Franklin Templeton give advisors simplified access to insurance solutions, allowing them to provide clients with comprehensive wealth management and individualized, secure, and tax-efficient retirement outcomes while maintaining asset control.

Prudential Financial, Inc. is a global financial services company offering life insurance, retirement solutions, investment management, and related financial products to individuals and institutional clients.

3. Arthur J. Gallagher & Co. (NYSE:AJG)

Arthur J. Gallagher & Co. is among the most oversold insurance stocks.

TheFly reported on March 11 that Barclays upgraded AJG to Overweight from Underweight and raised the price target to $262 from $247. According to the firm, the insurance brokerage sector has recently declined due to concerns over AI-driven disruption, but it considers this market reaction excessive. Barclays believes current valuations already reflect slower growth, while underestimating the resilience of the brokerage model and the potential for AI to improve efficiency and margins.

The firm also emphasized that AJG offers stability and the potential to gain from productivity gains through AI integration, making it a potent defensive choice in the current climate.

Separately, Risk Placement Services, Inc. (RPS), the U.S. wholesale brokerage and programs division of Arthur J. Gallagher & Co., said on March 9 that it had purchased Agoura Hills, California-based S Philips Surety & Insurance Services, Inc. Jeremy Crawford, leader of RPS’s surety operations, will continue to lead the team at S Philips, which specializes in offering surety bonds to agents and brokers on the West Coast. Through the acquisition, RPS’s product offerings are expanded, and its regional surety expertise is strengthened. The transaction’s terms have not yet been made public.

Arthur J. Gallagher & Co. is a global insurance brokerage and risk management firm providing property, casualty, employee benefits, and consulting services to clients across industries worldwide.

2. Marsh & McLennan Companies, Inc. (NYSE:MRSH)

Marsh & McLennan Companies, Inc. is among the most oversold stocks.

TheFly reported on March 11 that Barclays adjusted its price target for MRSH to $209 from $210, while the firm maintained an Overweight rating on the stock. Barclays noted that the insurance brokerage sector has recently experienced a sharp selloff due to concerns over AI-related disruption, which the firm considers excessive. MRSH is positioned as a strong player that can profit from efficiency gains because current valuations are thought to already reflect slower growth while undervaluing the brokerage model’s durability and AI’s capacity to increase productivity and profitability.

Additionally, in a recent development, on March 2, the Marsh & McLennan Companies, Inc. Agency unveiled Network Navigator. Employers may evaluate costs and network performance by region, specialty, and service type thanks to this exclusive healthcare pricing technology, which converts new price-transparency laws into comprehensive provider-level analytics.

By filling up the gaps in current network evaluation techniques that rely on insufficient or self-reported data, the tool is intended to assist employers in managing growing healthcare costs, optimizing plan selections, and directing staff to high-quality, economical care.

Marsh & McLennan Companies, Inc. is a global professional services firm offering risk management, insurance brokerage, consulting, and advisory services to clients across industries worldwide.

1. The Progressive Corporation (NYSE:PGR)

The Progressive Corporation (NYSE:PGR) is among the most oversold stocks.

TheFly reported on March 11 that BMO Capital reduced its price target for PGR to $208 from $232 while keeping a Market Perform rating on the shares. The firm notes that limited pricing power is expected to be partially offset by low single-digit claims inflation. It also highlights anticipated efficiencies in the company’s expense ratio due to AI adoption.

Despite these positives, BMO expects consensus revenue forecasts to decline further as PGR’s ability to raise auto insurance premiums continues to soften. The update reflects the firm’s assessment of both operational improvements and ongoing pricing challenges in the auto insurance market.

Separately, on March 9, the Board of Directors of The Progressive Corporation announced a quarterly dividend of $0.10 per common share, demonstrating the company’s sound financial standing. The stockholders listed at the close of business on April 2, 2026, will receive this dividend on April 10, 2026. The announcement demonstrates the company’s continued dedication to giving shareholders their money back while upholding a strict approach to financial management. In its primary insurance business, Progressive continues to strike a balance between operational stability and shareholder returns.

The Progressive Corporation is a U.S. insurance company providing personal and commercial auto, property, and specialty insurance products directly and through agents nationwide.

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