10% of P&C Insurers Are Pulling Away on AI

Key Takeaways

• AI‑mature insurers grew revenue 21% faster than peers
• 72% AI spend on infrastructure, only 28% on change management
• 55% insurers report no clear AI ROI or ownership
• Two‑thirds cite internal AI skills shortage
• Only 10% of carriers have scaled AI, defining competitive edge

Pulse Analysis

Artificial intelligence is reshaping the property‑and‑casualty (P&C) landscape, but the Capgemini 2026 World P&C Report makes clear that adoption is still uneven. While a modest 10% of carriers have moved beyond pilots to full‑scale AI integration, those firms are reaping outsized benefits—revenue growth that outpaces peers by 21% and share‑price appreciation roughly 51% higher. This performance gap reflects not just technology deployment but strategic execution: firms that embed AI into underwriting, pricing and claims workflows are turning data‑driven insights into new business, while many competitors remain stuck in exploratory phases.

The report also highlights a misallocation of resources that could hinder further gains. Seventy‑two percent of AI budgets are funneled into infrastructure—cloud platforms, data lakes and model development—yet only 28% supports change‑management, training and cultural adoption. Consequently, more than half of insurers cannot demonstrate a clear return on AI investments, and a majority of employees with AI tools report unchanged daily tasks. Addressing this imbalance by shifting capital toward workforce enablement and clear ownership structures is the most actionable lever for carriers seeking to accelerate AI‑driven growth.

For executives, the implications are immediate. AI maturity now functions as a revenue engine rather than a back‑office efficiency tool, making it a decisive factor in competitive positioning, especially as premium growth slows. Companies must establish measurable AI KPIs, assign accountable leadership, and invest in talent development to close the skills gap. Those that do will not only capture higher margins but also build resilient underwriting platforms capable of navigating evolving risk landscapes, from climate‑related losses to emerging cyber exposures.