Report from the tech consultant finds only 10% of insurers scaling AI effectively, with most still stuck at pilot stage and failing to track returns
A small cohort of property and casualty insurers are pulling ahead of the market by embedding artificial intelligence (AI) into core operations, achieving up to 21% higher revenue growth, according to research from Capgemini.
The “World Property & Casualty Insurance Report 2026” finds just 10% of insurers have reached this level of maturity, while the majority continue to struggle to move beyond pilots and proof-of-concept work.
Capgemini’s in-house think tank describes this leading group as “intelligence trailblazers”, organisations that treat AI as a core operating capability rather than a set of tools, aligning strategy, talent, technology and adoption.
These firms have also delivered around 51% greater share price growth over three years, the study says, underlining a widening competitive gap across the sector.
The report suggests much of the lag stems from a lack of measurement and accountability.
Some 42% of insurers track no AI metrics, while 55% say there is no clear return on investment from their initiatives.
A similar proportion report unclear ownership of AI programmes, leaving responsibility with small teams and limiting enterprise-wide impact.
As a result, 60% of insurers remain in exploratory or pilot phases, unable to scale deployments across the business.
Discipline, not just tech
Trailblazers differentiate themselves through organisational discipline as much as technology.
They are nearly four times more likely to invest in change management beyond basic training, nearly three times more likely to deploy explainable AI infrastructure, and nearly twice as likely to embed AI responsibilities into job descriptions.
By contrast, most insurers are grappling with what the report calls an “architecture mismatch”, where investment in technology outpaces the organisation’s ability to adopt it.
On average, carriers allocate 72% of AI spend to infrastructure, with just 28% directed toward change management, training and leadership alignment.
This imbalance is limiting the impact of AI initiatives, even where tools are already deployed.
Two-thirds of insurers cite a shortage of AI skills, while 47% of employees with access to AI tools say their workday remains unchanged after 18 months of use.
“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,” says Kartik Ramakrishnan, CEO of Capgemini’s financial services strategic business unit.
“While many insurers are navigating familiar technical and cultural hurdles, the opportunity ahead is clear. By strengthening data foundations, clarifying ownership, and investing in skills and governance, insurers can move beyond pilots and unlock enterprise-wide value,” Ramakrishnan says.
Structural changes
The report also highlights structural challenges around how AI is used within organisations.
Nearly half of employee time is spent on cross-team collaboration, yet most AI tools remain focused on individual tasks rather than enterprise workflows.
Data readiness is another constraint, with only 12% of insurers reporting very high maturity despite heavy reliance on unstructured data.
A trust gap is also emerging. Some 43% of employees cite job security as a key concern, while only 14% say they are very clear on how AI fits into their work.
Capgemini argues the next phase of adoption will depend on redefining how humans and AI interact across the business.
The report outlines a model in which leadership sets clear strategy and governance, employees focus on complex decision-making supported by real-time insights, and AI agents automate routine tasks.
Within this structure, dedicated roles would align business strategy with AI deployment, allowing capabilities to scale more effectively across large organisations.
The technology and consulting firm added that insurers must embed AI into everyday decision-making, strengthen data foundations and redesign workflows if they are to move beyond experimentation and realise sustained value.
“The focus now must be on building the organizational discipline that sustains AI’s impact across the business,” Ramakrishnan adds.
Click here to read the report.
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