Advanced Analytics Deliver 6-Point Ratio Improvement and 3% Premium Growth for Insurers
North American P&C insurers that invested in advanced analytics and AI achieved combined ratios six percentage points lower and 3% higher premium growth from 2022 to 2024 versus slower adopters. Over half now use generative AI and 80% employ advanced rating models, with predictive analytics universal by 2026.
1. Survey Reveals Analytics Impact on Profitability
The WTW 2026 Advanced Analytics and AI Survey of 59 North American P&C insurers found that companies investing in sophisticated analytics achieved combined ratios six percentage points lower and premium growth three points higher from 2022 to 2024 compared to slower adopters.
2. Widespread Adoption and Future AI Plans
Almost 80% of insurers now use advanced rating and pricing models and another 11% plan implementation, making predictive analytics universal by 2026. Generative AI tools are already in use at over half of carriers with 29% planning adoption within two years, and 60% targeting AI-augmented underwriting by 2028.
3. Implementation Barriers and Strategy Gaps
Data quality and IT bottlenecks are cited by 42% of insurers as major obstacles, while only 20% report having a defined analytics strategy and 12% regularly train employees in analytics, highlighting the need for robust governance to support AI initiatives.