AI Adoption in Property and Casualty Insurance Lagging, Report Reveals
The Capgemini Research Institute's World Property & Casualty Insurance Report 2026 reveals that only 10% of property and casualty insurers have effectively scaled artificial intelligence (AI). This lag in progress is largely because 42% of insurers do not track AI performance metrics, and 60% remain in the exploratory or proof-of-concept phase.
Luca Russignan, Capgemini's Global Head of Research for Financial Services, highlighted that 72% of AI investments focus on technology itself, while a mere 28% are allocated for change management crucial for effective implementation. Consequently, nearly half of the employees using AI report no significant changes in their work processes over an 18-month period. Russignan remarked, "The technology is maturing, but the organizational conditions to absorb it are not yet keeping pace."
The data for the report stems from three comprehensive surveys: the Global Voice of the Customer Survey, the Global Insurance Employee Surveys, and the Global Insurance Executive Interviews. These surveys gathered insights from clients, employees, and senior executives within the P&C sector.
Most insurers, accounting for 86%, are building foundational AI literacy for their workforce, with around 52% focusing on governance and risk management. Moreover, 46% of insurers are enhancing advanced AI skills, while 27% concentrate on incentive and workflow redesign.
Significantly, insurers leading AI adoption experience enhanced revenue growth and share price performance compared to their peers. Yet, even industry frontrunners have not fully scaled AI beyond task-level functions. Russignan noted that the future challenge involves integrating AI into decision-making processes for risk selection, claim settlement, and pricing, stating, "Insurers that successfully overcome this challenge will design systems where human expertise and AI execution work in tandem."
In other insurance industry developments, a Cotality report identifies the New York metropolitan area as having the highest number of homes at risk from hurricane winds nationwide. Furthermore, innovative solutions are emerging to assist health plan members in understanding their coverage and billing processes, offering valuable business intelligence to pinpoint cost drivers. Meanwhile, Iranian shipping firms have launched a Bitcoin-backed insurance service for the Strait of Hormuz passage, according to the Fars news agency.