Property and casualty insurers in North America that have invested heavily in advanced analytics and artificial intelligence have recorded stronger profitability and faster premium growth than their peers, according to a new survey by global advisory firm WTW.
The WTW 2026 Advanced Analytics and AI Survey found that insurers with more sophisticated analytics capabilities achieved combined ratios six percentage points lower and premium growth three percentage points higher than slower adopters between 2022 and 2024.
The survey drew on responses from 59 P&C insurers across the United States and Canada, with participation from senior executives in analytics, actuarial, and strategy roles.
Predictive pricing models have become near-universal across the sector. Close to 80% of survey respondents said they rely on advanced rating and pricing models, with a further 11% planning to adopt them soon.
Claims functions have been slower to follow. Fewer than a third of carriers currently use advanced analytics for fraud detection (33%) or severity assessment (29%). However, those figures are projected to reach 65%–70% within two years. The share of insurers using straight-through processing in claims workflow automation is also expected to rise sharply, from 14% to 50%.
Generative AI and large language models are also gaining ground. More than half of respondents said they already use these technologies, with a further 29% planning to do so within two years. Only 16% currently use AI to augment human underwriting decisions, but 60% said they plan to prioritise this capability by 2028. Overall, AI and machine learning adoption across underwriting, claims and customer service is on course to double or triple by that year, the survey said.
Despite the momentum, significant obstacles remain. Some 42% of respondents cited data-related issues - including poor quality and limited accessibility - and inadequate IT support as major barriers to adoption. Building an analytics-driven culture also lags behind: only 20% of respondents said they have a well-defined analytics strategy guiding daily activities, and just 12% regularly offer analytics training to employees.
Laura Doddington, head of personal and commercial lines at WTW’s Insurance Consulting and Technology division in North America, said the gap between leaders and laggards was widening.
“Advanced analytics and AI are beginning to yield significant pay-offs, as lead carriers report measurable returns on investment,” Doddington said. “With insurers planning to ramp up investment across personal and commercial lines, advanced analytics is shifting rapidly from competitive advantage to an essential requirement to maintain market viability and drive sustainable growth.”
She cautioned, however, that the technology alone would not guarantee results. “The ability to harness advanced analytics and AI will increasingly define market relevance, operational efficiency, and strategic agility,” Doddington said. “At the same time, using AI tools without a solid foundation may exacerbate existing issues rather than solve them.”
Doddington added that infrastructure and governance would be decisive factors. “Data quality and robust governance, combined with the capability to deploy analytics without hitting IT bottlenecks, are crucial for successful AI and machine learning adoption,” she said. “Insurers that master these fundamentals will be best positioned to leverage these advanced tools and techniques to gain a competitive edge in an increasingly data-driven market.”
