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P&C insurers lag in scaling AI beyond pilots, reports say
Capgemini data cited in the report found about 60% of insurers are still at exploration or proof of concept, while 42% do not use key performance indicators to judge whether AI investments are working.
Most property and casualty insurers are struggling to move artificial intelligence projects past testing and into broader business use, with gaps in data, governance and internal processes slowing adoption, according to Insurance Business.
Capgemini's 2026 World Property and Casualty Insurance Report, based on interviews with 344 senior insurance executives across 18 markets, found that around 60% of insurers remain in exploration or proof-of-concept stages. The study also reported that 42% of insurers do not use key performance indicators to measure whether their AI investments are working.
The same report said insurers directed 72% of their AI-related spending toward technology, compared with 28% for change management, highlighting a spending-versus-readiness mismatch. ReSource Pro's 2026 AI Lessons Learned Report, based on interviews with more than 40 executives across the insurance value chain, points to similar challenges across the U.S. P and C market.
ReSource Pro said winning organizations treat AI as business transformation rather than an IT initiative, and it identified poor data quality as the most common barrier. It also emphasized that insurers need clear workflows, documented procedures, defined responsibility for AI projects, and human judgment to verify AI outputs, with management deciding approvals, monitoring performance and intervening when systems produce unreliable results.