The World Property and Casualty Insurance Report 2026 states that insurers with advanced AI capabilities recorded up to 21 percent higher revenue growth, while Kartik Ramakrishnan, CEO of Capgemini’s Financial Services Strategic Business Unit, said stronger governance, skills, and enterprise wide adoption remain essential for scaling AI successfully
A widening artificial intelligence gap is beginning to reshape the global property and casualty insurance industry, according to the Capgemini Research Institute’s World Property and Casualty Insurance Report 2026. The study finds that a small group of insurers embedding AI into core business strategy are significantly outperforming competitors, while a majority of firms continue to struggle to move beyond pilot programs and proof of concept stages.
The report states that only 10 percent of insurers currently qualify as AI “trailblazers,” with these firms achieving up to 21 percent higher revenue growth and an approximately 51 percent greater increase in share price over a three year period. According to the findings, these organizations treat AI as a core operating capability by aligning technology investments with workforce adoption, governance, and organizational accountability.
The report highlights that 60 percent of insurers remain in the exploration or proof of concept stage, while 42 percent do not track AI metrics at all. Capgemini noted that the lack of measurable outcomes and ownership structures continues to limit enterprise wide implementation across the sector.
From an India perspective, the findings indicate strong momentum in both enterprise adoption and customer readiness for AI powered insurance services. The report found that 86 percent of surveyed Indian insurance customers expect improved personalization, while 83 percent are comfortable with AI enabled insurance services. It also observed that a growing number of Indian insurers are beginning to integrate AI into core business operations and strategy.
According to the report, trailblazer insurers are nearly four times more likely to invest in change management beyond basic employee training and almost three times more likely to implement explainable AI systems that improve trust and enterprise wide confidence. These firms are also nearly twice as likely to integrate AI responsibilities directly into employee job descriptions.
The study points to what it describes as an “architecture mismatch” across the wider insurance industry, where technology investment is advancing faster than organizational readiness. On average, insurers allocate 72 percent of AI investments toward technology and infrastructure, while only 28 percent goes toward workforce readiness, leadership training, and operational integration.
More than half of surveyed insurers said they lacked clarity on return on investment from AI initiatives, while an equal percentage stated ownership of AI programs remained unclear within their organizations. Capgemini also found that 67 percent of insurers reported shortages in AI related skills, and nearly half of employees using AI tools said their day to day work had not significantly changed after 18 months of implementation.
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.”
He added, “By strengthening data foundations, clarifying ownership, and investing in skills and governance, insurers can move beyond pilots and unlock enterprise wide value.”
The report also identified growing workforce concerns around AI adoption. Forty three percent of employees surveyed cited job security as a major concern, while only 14 percent said they were very clear on how AI fits into their role. Nearly half of employee time is currently spent on cross team collaboration, yet many AI systems remain limited to individual task automation.
Capgemini stated that insurers now have an opportunity to redesign operating models around human and AI collaboration, where leadership defines strategic direction, employees focus on higher value decision making, and AI agents automate repetitive operational tasks.
The World Property and Casualty Insurance Report 2026 draws insights from interviews and surveys involving 344 senior insurance executives, 809 insurance employees, and 1,113 policyholders across major markets in the Americas, Europe, and Asia Pacific.
At Prittle PrattleNews, featuring you virtuously, we celebrate the commitment and innovation. Led by Editor-in-Chief Smruti Bhalerao, our platform is dedicated to sharing impactful stories that inspire change and create awareness. Follow us on LinkedIn, Instagram, and YouTube for more stories that matter.
Add Comment