Insurers using advanced analytics and AI report strong returns on investment and premium growth

Rhea-AI Summary

WTW (NASDAQ: WTW) survey dated March 19, 2026 finds North American P&C insurers that invested more in advanced analytics and AI posted materially better outcomes. Lead adopters achieved combined ratios 6 percentage points lower and premium growth 3 percentage points higher from 2022–2024.

The survey shows near-universal adoption of predictive rating by 2026, rising use of claims analytics and generative AI, but highlights data quality, IT bottlenecks, and limited analytics strategy and training as adoption barriers.

Positive

• Combined ratio improvement of 6 percentage points for advanced adopters
• Premium growth advantage of 3 percentage points (2022–2024)
• Predictive rating models essentially universal by 2026 (80%+ adoption/near-term plans)
• Generative AI in use by over half of respondents with 29% planning adoption

Negative

• Data problems reported by 42% of insurers (quality and access issues)
• Only 20% report a well-defined analytics strategy guiding daily work
• Just 12% regularly offer analytics training to employees
• IT bottlenecks cited as a significant barrier to scaling analytics

News Market Reaction – WTW

-0.06%

1 alert

-0.06% News Effect

On the day this news was published, WTW declined 0.06%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Combined ratio improvement: 6 percentage points lower Premium growth uplift: 3 percentage points higher Advanced pricing users: 80% of insurers +5 more

8 metrics

Combined ratio improvement 6 percentage points lower Advanced analytics adopters vs slower adopters, 2022–2024

Premium growth uplift 3 percentage points higher Advanced analytics adopters vs slower adopters, 2022–2024

Advanced pricing users 80% of insurers Rely on advanced rating and pricing models

Fraud analytics use 33% of carriers Currently use claims advanced analytics for fraud detection

Severity analytics use 29% of carriers Currently use claims analytics for severity assessment

Planned straight-through processing 36% of insurers Plan to introduce straight-through processing in claims workflows

Current straight-through processing 14% of insurers Currently have straight-through processing in claims workflows

Data/IT issues 42% of respondents Report data concerns and IT bottlenecks as major barriers

Market Reality Check

Price: $291.25 Vol: Volume 407,049 is below t...

low vol

$291.25 Last Close

Volume Volume 407,049 is below the 20-day average of 689,556, suggesting muted pre-news interest. low

Technical Shares at 287.39 are trading below the 200-day MA of 319.24 and 18.54% under the 52-week high.

Peers on Argus

WTW was down 0.85% with mixed peer moves: BRO -1.37%, AON -0.56%, MMC -1.36%, ER...

WTW was down 0.85% with mixed peer moves: BRO -1.37%, AON -0.56%, MMC -1.36%, ERIE -0.62%, while AJG rose 0.59%, pointing to stock-specific dynamics ahead of this AI-focused release.

Previous AI Reports

4 past events · Latest: Feb 02 (Positive)

Same Type Pattern 4 events

Date	Event	Sentiment	Move	Catalyst
Feb 02	AI product launch	Positive	-0.3%	Launch of Rewards AI generative compensation intelligence platform.
Oct 14	AI platform upgrade	Positive	+2.0%	Radar 5 release adding Gen AI and scaled insurance pricing analytics.
Mar 24	AI impact report	Neutral	+1.4%	Report on AI-driven data center demand and construction challenges.
Feb 11	AI assistant launch	Positive	-1.8%	Launch of Expert AI assistant for HR, compensation, and benefits.

Pattern Detected

AI-related releases have produced mixed reactions, with an even split between aligned and divergent price moves.

Recent Company History

Over the past year, WTW has issued multiple AI-focused updates. In February 2026, it launched Rewards AI for compensation intelligence, which saw a modest share decline. The October 14, 2025 Radar 5 launch with generative AI capabilities coincided with a stronger positive reaction. Earlier, AI-linked commentary on construction and data center trends in March 2025 and the launch of the HR AI assistant Expert in February 2025 produced mixed moves. Today’s survey-based AI news continues this theme of ongoing AI build-out.

Historical Comparison

+0.3% avg move · In the past year, WTW released 4 AI-tagged updates with an average move of 0.31%, showing generally ...

AI

+0.3%

Average Historical Move AI

In the past year, WTW released 4 AI-tagged updates with an average move of 0.31%, showing generally modest stock reactions to AI news.

WTW’s AI trajectory spans HR tools, compensation platforms, and insurance pricing engines, and this survey reinforces its positioning around analytics and AI adoption.

Market Pulse Summary

This announcement underscores that P&C insurers adopting advanced analytics and AI reported combined...

Analysis

This announcement underscores that P&C insurers adopting advanced analytics and AI reported combined ratios 6 points lower and premium growth 3 points higher than slower adopters. For WTW, it reinforces a multi-year narrative around AI-enabled offerings in pricing, underwriting, and HR. Investors may focus on whether clients overcome barriers such as data quality and IT bottlenecks, and on how WTW’s analytics capabilities translate into sustained demand and profitability over time.

Key Terms

advanced analytics, combined ratios, predictive rating models, straight-through processing, +4 more

8 terms

advanced analytics technical

"insurers that invested more resources in advanced analytics and AI achieved"

Advanced analytics involves using sophisticated techniques and tools to examine large amounts of data, uncover patterns, and generate insights that might not be obvious at first glance. For investors, it’s like using a high-powered microscope to see details that help predict future trends or make better decisions. This approach helps turn complex information into clear, actionable knowledge.

combined ratios financial

"achieved combined ratios six percentage points lower and premium growth"

Combined ratio is a measure used by insurance companies that adds together the costs of claims paid and the operating expenses, expressed as a percentage of premiums earned. It tells investors whether an insurer’s core business of writing policies is making money on its own: a ratio below 100% is like selling a product for more than it costs to produce and deliver, while above 100% means the insurer is losing money on underwriting.

predictive rating models technical

"This makes predictive rating models essentially universal from 2026."

Predictive rating models are computer-based tools that analyze past financial data, market signals and other relevant factors to assign a forward-looking score or recommendation—such as a credit grade or buy/hold/sell rating—about a company, security or loan. Investors use them like a weather forecast or a credit score: they summarize complex signals into a single guidance that helps judge future risk and return, influence trading decisions and set expectations, though they are not guarantees.

straight-through processing technical

"plan to introduce straight-through processing in claims workflow automation"

Straight-through processing is an automated workflow that completes financial transactions from start to finish without manual intervention, like a self-service checkout that scans, charges, and bags items automatically. It matters to investors because it reduces mistakes, speeds up settlement, lowers operating costs and counterparty risk, and helps firms scale their business more efficiently — all of which can improve profit margins and reliability.

large language models (LLMs) technical

"Large language models (LLMs) and generative AI may be recent additions"

Large language models (LLMs) are advanced computer programs trained on massive amounts of text to generate, summarize, translate and understand human-like language. For investors they matter because LLMs can act like a very fast, experienced research assistant—automating customer service, speeding product development and cutting costs—while also creating new revenue opportunities and regulatory, accuracy and ethical risks that can affect a company’s profits and reputation.

generative AI technical

"Large language models (LLMs) and generative AI may be recent additions"

Generative AI is a type of computer technology that can create new content, like text, images, or music, on its own. It’s important because it can produce realistic and useful material quickly, which could change how we create art, write stories, or even develop new products. Think of it as a smart robot that can invent and produce things almost like a human.

machine learning technical

"successful AI and machine learning adoption. Insurers that master these"

Machine learning is a set of computer programs that learn patterns from large amounts of data and improve their predictions or decisions over time, like a recipe that gets better each time it’s adjusted based on taste tests. For investors it matters because these systems can speed up analysis, spot trends or risks humans might miss, automate routine work, and potentially create competitive advantages or cost savings that affect a company’s performance.

governance regulatory

"Data quality and robust governance, combined with the capability"

Governance refers to the systems and processes that determine how an organization is directed and controlled. It involves making decisions, establishing rules, and overseeing activities to ensure the organization operates fairly, transparently, and in the best interests of its stakeholders. Good governance helps build trust and stability, which are important for investors because they indicate responsible management and reduce risks.

AI-generated analysis. Not financial advice.

NEW YORK, March 19, 2026 (GLOBE NEWSWIRE) -- Property and casualty (P&C) insurers in North America that invested more resources in advanced analytics and AI achieved greater profitability and premium growth, according to a new survey from WTW (NASDAQ: WTW), a leading global advisory, broking, and solutions company.

The WTW 2026 Advanced Analytics and AI Survey reveals that insurers using more sophisticated analytics achieved combined ratios six percentage points lower and premium growth three percentage points higher compared to slower adopters between 2022 and 2024.

Laura Doddington, Head of Personal and Commercial Lines, Insurance Consulting and Technology, North America, WTW, stated: “Advanced analytics and AI are beginning to yield significant payoffs, as lead carriers report measurable returns on investment. With insurers planning to ramp up investment across personal and commercial lines, advanced analytics is shifting rapidly from competitive advantage to essential requirement to maintain market viability and drive sustainable growth.”

Almost all insurers that took part in the WTW survey now use underwriting and pricing analytics. Close to 80% of insurers rely on advanced rating and pricing models, with an additional 11% planning to implement them soon. This makes predictive rating models essentially universal from 2026.

While claims functions have been slower to adopt, more insurers are now signaling aggressive plans to expand their use of advanced analytics. Although one-third or fewer carriers currently use claims advanced analytics for fraud detection (33%) and severity assessment (29%), these figures are expected to reach 65-70% within the next two years. An additional 36% plan to introduce straight-through processing in claims workflow automation, a significant increase from the current 14%.

Large language models (LLMs) and generative AI may be recent additions to the insurance industry, yet over half of survey respondents report already using them - another 29% plan to begin adopting these technologies within the next two years. While only 16% currently use AI to augment human underwriting, this figure is set to rise sharply, with 60% of insurers planning to prioritize this between now and 2028.

If survey respondents follow through with their intended AI and machine learning initiatives, adoption in underwriting, claims, and customer service is set to increase two or even threefold by 2028.

Data concerns and IT bottlenecks are the main challenges experienced by survey respondents in the adoption of analytics, with 42% reporting data-related issues - such as poor quality and limited accessibility – and inadequate IT support as significant barriers.

Building an analytics-driven culture also remains work in progress. Just 20% report having a well-defined analytics strategy to guide daily activities, and only 12% of insurers in the survey regularly offer analytics training to employees.

Doddington commented: “The ability to harness advanced analytics and AI will increasingly define market relevance, operational efficiency, and strategic agility. At the same time, using AI tools without a solid foundation may exacerbate existing issues rather than solve them.

“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. 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.”

About the Survey
WTW’s 2026 Advanced Analytics & AI Survey asked P&C insurers in the United States and Canada for their insights on the future of advanced analytics. A total of 59 P&C insurers participated, drawing on the views of senior insurance executives across analytics, actuarial, and strategy functions.

About Insurance Consulting and Technology
WTW’s Insurance Consulting and Technology business is a global leader in P&C, Life, and Health insurance software and advisory services. With over 1,700 colleagues in 35 markets, we combine deep insurance expertise with leading-edge technology to help insurers navigate complexity and unlock value across pricing, underwriting, reserving, financial and capital modeling, claims, portfolio management, and regulatory reporting.

We’re redefining insurance through innovation and technology. By harnessing Generative and Agentic AI, we’re creating next-generation processes that reduce friction, enhance decision-making, and unlock faster, smarter outcomes for our clients. These capabilities accelerate innovation and enable us to deliver with unmatched precision and scale.

More than 1,000 insurers across six continents—including many of the world’s leading insurance groups—trust our unique combination of advisory insight and advanced software to power their businesses and drive sustainable growth.

About WTW
At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions across people, risk, and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce, and maximize performance.

Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you.

Learn more at wtwco.com.

Media contacts
Arnelle Sullivan: +1 718 208 0474 | Arnelle.Sullivan@wtwco.com
Andrew Collis: +44 7932 725 267 |   Andrew@acolliscommunications.com

FAQ

How did advanced analytics and AI affect insurer profitability in WTW's March 19, 2026 survey (WTW)?

Adopters reported higher profitability; combined ratios were six percentage points lower. According to the company, carriers investing more in advanced analytics and AI achieved this combined-ratio advantage between 2022 and 2024, reflecting improved underwriting and pricing performance.

What premium growth benefit did insurers see from analytics in the WTW 2026 survey (WTW)?

Insurers using sophisticated analytics saw premium growth three percentage points higher. According to the company, this premium advantage was measured comparing faster adopters to slower adopters over the 2022–2024 period, tied to pricing and market competitiveness.

What adoption levels of predictive rating and pricing does the WTW March 19, 2026 survey report (WTW)?

Predictive rating models are essentially universal by 2026, with close to 80% using them and 11% planning implementation. According to the company, this makes advanced rating and pricing nearly standard across surveyed P&C insurers.

How prevalent is generative AI and LLM use among insurers in the WTW 2026 survey (WTW)?

Over half of respondents already use LLMs and generative AI, with 29% planning adoption. According to the company, generative AI has rapidly entered insurer toolkits and adoption is set to expand further across functions.

What are the main barriers to analytics and AI adoption identified by WTW on March 19, 2026 (WTW)?

Data quality/access and IT bottlenecks are the top barriers, reported by 42% of respondents. According to the company, inadequate IT support and governance limitations are slowing the scaling of analytics and AI across insurers.

How will underwriting AI adoption change by 2028 according to WTW's March 19, 2026 survey (WTW)?

Underwriting AI adoption is set to rise sharply, from 16% current use to 60% prioritizing it by 2028. According to the company, insurers plan significant expansion of AI to augment human underwriting over the next two years and beyond.