Insurance Organizations Ramp Up AI Amid Limited ROI Evidence, ScienceSoft Finds

ScienceSoft has released its Q3 2026 Insurance AI Trend Watch, a proprietary research report examining the latest AI adoption trends across the insurance industry. Drawing on Q3 industry studies, market developments, and ScienceSoft's project work, the report highlights where AI is delivering the greatest value today and what insurance market participants and insurtech vendors should prepare for over the next 12 months.

The research reveals that AI adoption continues to accelerate across the insurance industry, with agentic AI emerging as a major investment priority. The findings point to a growing share of insurers piloting agentic AI, with large P&C carriers showing a 3.5-fold increase in pilots between 2025 and 2026. ScienceSoft examines recent agentic AI initiatives at The Travelers Companies, Allstate, IMA Financial Group, and State Farm, focusing on early use cases and insurers' choices between proprietary and off-the-shelf solutions.

Despite growing interest in agentic AI, ScienceSoft finds that generative AI remains more widely adopted in production. The research indicates that 94% of large insurance organizations had GenAI initiatives underway in Q3, with 36% of those already operating production GenAI solutions. ScienceSoft’s analysts examine recent GenAI deployments in brokerage and underwriting, including implementation cases from Marsh and Alliant Insurance Services and product launches by Willis Towers Watson and nsur.ai.

The research identifies operational efficiency and underwriting profitability as the industry's top near-term goals of AI initiatives. ScienceSoft finds that reported AI adoption outcomes largely align with insurers’ priorities: the research team points to productivity gains as the most frequently reported benefit of production AI use cases and to early evidence of measurable AI-driven improvements in insurers’ loss ratios.

At the same time, ScienceSoft finds that insurance organizations generally struggle to measure the financial impact of their AI investments. The research shows that only 11% of insurers have a very clear understanding of their AI return on investment (ROI), while 42% haven’t yet measured AI outcomes at all. The research report includes expert commentary from ScienceSoft's consultants on the risks of inadequate ROI assessment and practical frameworks for measuring AI's business value.

The research also identifies a shift toward more structured, enterprise-wide AI transformation programs. Yet ScienceSoft finds that organizational change is lagging behind AI adoption, with workflow redesign, employee readiness, and governance posing major barriers to scaling AI. ScienceSoft's analysts conclude that insurers prioritizing these areas and establishing reliable AI value measurement frameworks over the next 12 months will be better positioned to achieve sustainable returns.

Beyond adoption trends, the research examines how insurance software vendors and insurtech firms are advancing their commercial AI offerings. ScienceSoft highlights core insurance software providers expanding their agentic AI capabilities and introducing tools for building custom, insurance-specific AI agents, with examples from Vertafore, Sapiens, Duck Creek Technologies, Guidewire, and Socotra.

Read the full Q3 2026 Insurance AI Trend Watch report for more insights.

About ScienceSoft

ScienceSoft is a Texas-headquartered AI transformation and software engineering company with 37 years of experience in artificial intelligence and 14 years in insurance IT. The company holds the 2025 Global Award for Insurance Digital Transformation Excellence and the 2026 AI Leader Award for Best AI Solution for Insurance. ScienceSoft helps insurance organizations identify high-value AI opportunities and implement controlled AI transformation programs with measurable return targets.

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