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.
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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.
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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. (NYSE:AEG) 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. (NYSE:AEG)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. (NASDAQ:EHTH) 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. (NASDAQ:EHTH) 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. (NYSE:HIPO) 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. (NYSE:HIPO) 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. (NYSE:RYAN) 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. (NYSE:RYAN) 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 (NASDAQ:WTW) 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 (NASDAQ:WTW) is a global advisory, broking, and solutions company providing risk management, insurance brokerage, and human capital consulting services to clients worldwide.
While we acknowledge the potential of WTW to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WTW and that has 100x upside potential, check out our report about this cheapest AI stock.
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