Only 10% of P&C Insurers Successfully Scale AI, Report Finds
A new industry report has identified a sharp divide in artificial intelligence adoption across property and casualty insurance. The Capgemini Research Institute's World Property & Casualty Insurance Report 2026 surveyed 344 senior executives, 809 insurance employees, and 1,113 policyholders across the Americas, Europe, and Asia-Pacific.
Just 10% of P&C insurers have successfully scaled AI. Capgemini calls this group "intelligence trailblazers." Over three years, these companies achieved up to 21% higher revenue growth and roughly 51% greater increases in share price compared with their peers.
The Measurement Problem
Forty-two percent of insurers track no AI metrics at all. This leaves 60% of the industry stuck in exploration or proof-of-concept phases with no reliable way to measure what works.
Fifty-five percent of P&C insurers reported unclear return on investment from AI initiatives. The same share said it was unclear who owned those initiatives within their organizations.
Where Investment Goes Wrong
The broader industry commits 72% of AI investments to technology and infrastructure, with only 28% going toward change management. Capgemini described this as an "architecture mismatch" - technology advances outpacing an organization's ability to integrate them.
Trailblazers take a different approach. They are nearly four times more likely to invest in change management beyond basic training. They are nearly three times more likely to have explainable AI infrastructure across their organizations, and nearly twice as likely to embed AI responsibilities directly into employee job descriptions.
The Skills and Accountability Gap
Two-thirds of insurers reported a shortage of AI skills. Nearly half of employees with access to AI tools said their workday remained unchanged even after 18 months of use.
Kartik Ramakrishnan, CEO of Capgemini's financial services strategic business unit, said: "The insurance industry is facing its moment of AI truth. Trailblazers are proof that when carriers embed AI into their business strategy from the outset it elevates from an efficiency play into a true competitive advantage that directly impacts the bottom line."
Ramakrishnan added that by "strengthening data foundations, clarifying ownership, and investing in skills and governance, insurers can move beyond pilots and unlock enterprise-wide value."
Consumer Acceptance Rises, With Limits
A separate survey by Insurity, a US-based insurance software provider, found consumer support for AI among P&C policyholders nearly doubled year over year, rising to 39% in 2026 from 20% in 2025. Resistance eased from 44% to 36%.
But openness has clear boundaries. Only 22% of consumers said they would feel comfortable with AI filing a claim on their behalf. Just 16% expressed comfort with AI canceling or renewing a policy autonomously.
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