Capgemini Report Flags AI Divide in P&C Insurance Sector

Research from Capgemini is uncovering a stark divide between AI leaders and laggards in the global property and casualty (P&C) insurance sector.

In its World Property & Casualty Insurance Report 2026, Capgemini reveals that just 10% of insurers have reached advanced AI maturity, yet these “intelligence trailblazers” are significantly outperforming their peers. 

According to Capgemini, these firms are achieving up to 21% higher revenue growth and a 51% greater increase in share price over a three-year period.

The findings emphasise a growing imbalance across the sector. 

While AI investment is widespread, it says that execution remains inconsistent.

One of the most notable figures in the study shows that 42% of insurers do not track AI metrics at all, leaving many unable to measure performance or scale successful initiatives. 

As a result, 60% of firms remain stuck in pilot or proof-of-concept stages.

From experimentation to enterprise value

The report highlights a structural issue across the industry: what Capgemini calls an “architecture mismatch”.

It finds that insurers are prioritising technology spend, allocating 72% of AI investment to infrastructure while dedicating just 28% to change management, including workforce training.

This imbalance, Capgemini finds, is limiting impact. 

More than half (55%) of insurers report unclear return on investment from AI, while the same proportion say ownership of AI initiatives is undefined. 

Without clear accountability, research shows that projects often remain siloed within small teams, preventing enterprise-wide transformation.

Even where tools are deployed, however, results are mixed. 

The study finds that nearly half (47%) of employees using AI say their day-to-day work has not changed after 18 months, while 67% of firms cite ongoing skills shortages.

Kartik Ramakrishnan, CEO of Capgemini’s Financial Services Strategic Business Unit and Group Executive Board Member, says: “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

“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. 

“The focus now must be on building the organizational discipline that sustains AI’s impact across the business.”

Human-AI collaboration takes centre stage

Beyond performance metrics, Capgemini’s research also points to a deeper operational challenge: integrating AI into how insurers actually work.

The study finds that nearly half of employee time (49%) is spent on cross-team collaboration, though most AI tools remain focused on individual tasks rather than enterprise workflows. 

At the same time, data readiness remains low, with only 12% of insurers reporting very high maturity despite heavy reliance on unstructured data.

What the report displays is that the growing trust gap further complicates adoption.

While AI capabilities are expanding, 43% of employees cite job security as a concern and only 14% say they clearly understand how AI fits into their roles.

Off the back of these findings, Capgemini says that insurers of the future will depend on a redefined human-AI partnership.

This is a model in which leadership sets strategic direction, employees focus on complex decision-making supported by real-time insights and AI agents handle routine processes. 

It adds that the addition of AI will not take away people’s jobs – rather that new roles, such as orchestration managers, will be critical to align AI systems with business objectives at scale.

The need to scale AI for a competitive advantage

Capgemini’s report lays out that success in AI will depend less on experimentation and more on disciplined execution – from embedding AI into organisational design to investing in workforce capabilities and ensuring explainability to build trust across the enterprise.

And, as insurers face increasing pressure to deliver growth and efficiency, the gap between leaders and laggards is expected to widen further.