The property and casualty (P&C) insurance industry has reached a “pivotal moment” for artificial intelligence (AI), marked by a widening competitive divide between a small group of “intelligent pioneers” and the rest of the industry, a recent Capgemini report says.
According to the 2026 World Property & Casualty Insurance Report, only 10% of businesses in the P&C industry have successfully scaled AI, while other industries struggle to gain meaningful benefits.
Report data shows that by treating artificial intelligence as a core operating capability rather than a set of tools, and integrating strategy with talent, technology foundation and organizational adoption, Trailblazers achieved revenue growth of up to 21% and stock price growth of approximately 51% in three years.
Capgemini noted that Trailblazers stand out in several key areas compared to mainstream insurers. They are almost four times more likely to invest in comprehensive change management than basic training.
Additionally, they are nearly three times more likely to have explainable AI infrastructure, which increases enterprise-wide confidence. Additionally, Trailblazers are nearly twice as likely to embed AI responsibilities directly into job descriptions, creating accountability.
“Trailblazers contrast with industries facing an ‘architectural mismatch,’ a pattern in which technology advances outpace the organization’s ability to effectively integrate technology. On average, property and casualty insurers dedicate 72% of their AI investments to technology and infrastructure, and only 28% to change management, including essential employee and leadership training. As a result, many AI initiatives struggle to reach their full potential, limiting enterprise-wide impact,” explained Capgemini.
The report indicates that the AI maturity gap is partly due to the fact that 42% of insurance companies do not track AI metrics.
More than half (55%) of property and casualty insurers point to a lack of clear ROI for AI initiatives, and a similar number also say it’s unclear who has AI initiatives at their company. This resulted in fragmented implementation among small teams with limited company-wide impact.
Even at the team level, the impact is limited: two-thirds (67%) of P&C insurers report a lack of AI skills, and nearly half (47%) of employees with access to AI tools say their workdays have remained unchanged even after 18 months of use.
Kartik Ramakrishnan, CEO of Capgemini Financial Services Strategic Business Unit and member of the Group Executive Board, said: “The insurance industry is facing a critical moment for artificial intelligence. Trailblazers have proven that when insurance companies embed AI into their business strategy from the beginning, it can move from an efficiency play to a real competitive advantage with a direct impact on the bottom line.”
He continued: “While many insurers are overcoming familiar technical and cultural barriers, the opportunities ahead are clear. By strengthening their data foundation, clarifying ownership, and investing in skills and governance, insurers can move beyond pilots and unlock value across the enterprise. The focus now must be on establishing organizational discipline to sustain the impact of AI across the business.”
While pioneers have established an immediate advantage through the use of AI, other companies in the industry still face challenges. Nearly half (49%) of employee time is spent collaborating across teams, yet most AI tools still operate at the level of individual tasks.
Data readiness is also low, with only 12% of insurers reporting very high levels of maturity despite heavy use of unstructured data. Additionally, the trust gap is widening, with 43% of employees worried about job security and only 14% having a clear understanding of the role of artificial intelligence at work.
The report highlights future opportunities for the insurance industry, with a focus on a reimagined operating model in which executive leadership sets strategic direction and defines the boundaries within which humans and AI collaborate.
It also involves skilled employees leveraging real-time insights to handle complex operational decisions, while AI agents automate routine, repetitive tasks.
In this model, orchestration managers can actively align business strategy and AI principles, enabling intelligence to scale across large enterprises.
To achieve this, Capgemini recommends that “insurers must embed AI into day-to-day collaboration and decision-making, strengthen their data foundations, and redesign workflows for the agent AI era.”
