Property and casualty insurers in North America that have invested in advanced analytics and artificial intelligence have seen better profits and faster growth compared to those that haven’t, according to a recent survey by global advisory firm WTW. The report highlights how embracing these technologies is starting to pay off in meaningful ways.
WTW’s 2026 Advanced Analytics and AI Survey collected insights from 59 insurers across the United States and Canada, featuring input from senior leaders in analytics, actuarial, and strategy roles. The findings reveal that companies with strong analytics capabilities posted combined ratios six percentage points lower and grew premiums three percentage points more between 2022 and 2024 than their peers who adopted these tools more slowly.
Many insurers are already using predictive pricing models, with nearly 80% relying on advanced rating methods and another 11% planning to jump on board soon. However, the adoption of analytics in claims processes lags behind. Less than a third currently use advanced analytics for fraud detection or assessing claim severity, though these numbers are expected to rise sharply within two years. The use of straight-through processing in automating claims is also predicted to grow, going from 14% to 50%.
Generative AI and large language models are gaining traction as well. More than half of the insurers surveyed are already using these technologies, and 29% plan to start within the next two years. While only 16% currently apply AI to support underwriting decisions, 60% aim to focus on this area by 2028. Overall, AI and machine learning use across underwriting, claims, and customer service could double or triple in the coming years.
Despite this progress, challenges remain. About 42% of respondents said poor data quality and limited access, along with weak IT support, are major obstacles to adopting these tools. Additionally, only 20% have a clear analytics strategy integrated into daily work, and just 12% provide regular analytics training for their staff.
Laura Doddington, who leads WTW’s Insurance Consulting and Technology division for North America, pointed out that the gap between companies leading in analytics and those falling behind is widening. She stressed that while advanced analytics and AI are beginning to offer clear benefits, success depends on more than just technology. A strong foundation of good data, IT infrastructure, and governance is essential.
“Using AI without addressing these basics might make problems worse instead of better,” Doddington said. She added that companies able to manage data quality and avoid IT bottlenecks will have the best chance to gain an edge in today’s data-driven insurance market.
As insurers plan to invest more in these technologies for both personal and commercial lines, it looks like advanced analytics and AI are becoming not just a competitive advantage, but a must-have to keep up and grow.