Only 10% of P&C insurers have successfully scaled AI, report finds
A new industry report has identified a sharp divide between insurers that have scaled artificial intelligence effectively and those still stuck in early-stage pilots. 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.
The 10% of insurers classified as "intelligence trailblazers" achieved up to 21% higher revenue growth and roughly 51% greater increases in share price over three years compared with peers. The gap reflects more than just better technology adoption-it signals a fundamental difference in how insurers approach governance and accountability.
Measurement and ownership gaps hold back the industry
Forty-two percent of insurers track no AI metrics at all, leaving 60% of the industry unable to measure what is working. This measurement problem explains why most insurers remain stuck in exploration or proof-of-concept stages.
Unclear ownership compounds the issue. Fifty-five percent of P&C insurers reported a lack of clear return on investment from AI initiatives, and the same share said it was unclear who owned those initiatives within their firms.
Trailblazers address this directly. They are nearly four times more likely to invest in change management beyond basic training, 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.
Technology investment without organizational readiness
The broader industry commits 72% of its AI investments to technology and infrastructure, with only 28% going toward change management. Capgemini called this an "architecture mismatch"-a pattern in which technology advances outpace an organization's ability to integrate them.
The human cost is visible in daily operations. Two-thirds of insurers reported a shortage of AI skills, and nearly half of employees with access to AI tools said their workday remained unchanged even after 18 months of use.
Consumer appetite for AI rises, with limits
Consumer support for AI among P&C policyholders nearly doubled year over year, rising to 39% in 2026 from 20% in 2025, according to a separate April survey by Insurity. Resistance eased from 44% to 36%.
But that openness has clear boundaries. Only 22% of consumers said they would feel comfortable with AI filing a claim on their behalf, and just 16% expressed comfort with AI canceling or renewing a policy autonomously.
For insurers looking to move beyond pilots, the report points to a consistent pattern: governance and skills matter as much as the technology itself. AI for Insurance requires clear ownership structures and strategic planning at the executive level to convert pilots into competitive advantage.
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