The moment of AI truth for property & casualty insurance: trailblazers see 21% higher revenue growth while broader industry lags
Capgemini Research Institute’s 2026 World Property & Casualty Insurance Report reviewed how property & casualty insurers use AI at different stages of adoption. The report pointed to a gap in scaling that affected revenue growth and share price outcomes over three years.
The report said 10% of insurers had successfully scaled AI while others remained in exploration or proof-of-concept. It also attributed part of the maturity gap to 42% of insurers tracking no AI metrics, and to 60% remaining in exploration or proof-of-concept without a way to measure and validate what works.
Capgemini defined “intelligence trailblazers” as insurers treating AI as a core operating capability by aligning strategy and talent, technology foundation, and organizational adoption. The report said trailblazers achieved up to 21% higher revenue growth and approximately 51% greater increase in share price over three years.
The report described differences between trailblazers and mainstream insurers, including change management beyond basic training and explainable AI infrastructure for enterprise-wide confidence, along with AI responsibilities embedded in job descriptions. It also cited an “architecture mismatch” pattern in which, on average, 72% of AI investments went to technology and infrastructure versus 28% to change management. Kartik Ramakrishnan, CEO of Capgemini’s Financial Services Strategic Business Unit and Group Executive Board Member, 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,” said. The report also cited that over half of insurers noted the absence of clear ROI on AI initiatives and that 67% cited a shortage of AI skills. Looking ahead, the report outlined a model in which executive leadership sets direction for human-AI collaboration and AI tools automate routine tasks.