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Insurers tout AI progress, but distribution and claims lag
KPMG found 44% of surveyed insurers ranked themselves in the top quartile for AI transformation, but only 3% had redesigned policy servicing or claims around AI.
Insurance leaders say they have made strong progress on artificial intelligence, but KPMG research indicates their organizations have not meaningfully rebuilt key insurance functions around AI. In its report Unlocking AI value in insurance, 44% of respondents placed their organization in the top quartile for AI transformation, and none said they were significantly behind.
KPMG also found a gap between AI confidence and operational redesign. No surveyed organization had fully redesigned sales and distribution or underwriting around AI, and only 3% said they had redesigned policy servicing or claims around AI.
The research surveyed insurance leaders at organizations with 500 or more employees across 20 countries and six regions from May 20 to 29, 2026, using a discussion-board format that combined structured questions with open-ended responses, and KPMG did not disclose participation counts. The report also draws on 53 insurance respondents from KPMG's Transforming the Enterprise 2026 study.
KPMG reported that many leaders see staying still as a risk. Some 77% said failing to redesign enterprise architecture for AI would hurt competitiveness within five years, and 68% said moving too slowly posed a bigger risk than moving too fast.