TechFlow News, March 4: A new report from Bank of America Global Research warns that over $15 billion in insurance industry commissions face significant disintermediation risk from artificial intelligence. The report states that large language model–powered digital agents can effectively replace the majority of work performed by 20,000–30,000 independent agents in the U.S., particularly in low-complexity transactions such as standard home and auto insurance. Analysts examined six major insurers—including Travelers and Progressive—and found that a substantial portion of the commissions these companies paid to independent agents in 2025 stemmed from low-complexity business.
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