Only 10% of P&C insurers have successfully scaled AI, Capgemini finds
Just one in ten property and casualty insurers are operating as AI trailblazers, according to the Capgemini Research Institute's World Property & Casualty Insurance Report 2026. The rest remain stuck in early stages, unable to move AI from pilot projects into production.
The gap between leaders and laggards stems from a fundamental mismatch in how insurers spend money on AI. Companies allocate 72% of AI budgets to technology and only 28% to change management-the human and organizational side that determines whether people actually use new tools.
The result: nearly half of employees using AI report no meaningful change in their daily work after 18 months.
"The technology is maturing, but the organizational conditions to absorb it are not yet keeping pace," said Luca Russignan, global head of Capgemini Research Institute for Financial Services.
Where the tracking breaks down
Forty-two percent of insurers don't track AI metrics at all. Sixty percent remain in exploration or proof-of-concept stage, unable to move beyond small experiments.
When insurers do invest in people, their priorities reveal the problem. Eighty-six percent focus on basic AI literacy for employees and leaders. Only 52% address governance and risk management. Just 46% develop advanced AI skills, and only 27% redesign workflows and incentives to actually support AI use.
Trailblazers outperform, but not at scale
The 10% of insurers leading on AI do see better financial results-stronger revenue growth and share price performance. Yet even they haven't cracked the hardest problem.
"Across the industry, AI still largely operates at the task level," Russignan said. "The decision layer-where risk is selected, claims are settled, and pricing is set-remains largely unchanged."
The insurers that break through will stop bolting AI onto existing structures. Instead, they'll redesign organizations where human expertise and AI execution work together by design.
Capgemini based its findings on three surveys conducted between December 2025 and March 2026, including responses from 1,113 customers, 809 insurance employees, and 344 senior executives at P&C insurers.
For insurance professionals looking to understand how your organization stacks up, explore AI for Insurance and AI for Executives & Strategy to assess both technical readiness and organizational change management.
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