Property and Casualty (P&C) Insurance Operations State of the Market 2025: Navigating Market Shifts, AI Adoption, and Growth Horizons

The Property and Casualty (P&C) insurance industry is operationally transforming in response to rising claims costs, regulatory pressures, and the need for agility in distribution and servicing. Insurers are moving beyond cost-driven outsourcing to pursue AI-enabled, platform-centric, and outcome-oriented service partnerships. The integration of modular platforms, cloud-native technologies, and intelligent automation is helping insurers achieve underwriting accuracy, improve claims efficiency, and enhance customer experiences.

The report examines key shifts in buyer behaviors, including increased demand from first-time and midsize buyers, the rise of multi-tower contracts, and the geographic expansion of outsourcing beyond North America to the UK and APAC. It also highlights high-growth segments such as specialty insurance, Managing General Agents (MGAs), and underwriting support, where providers can deliver differentiated value. Provider performance ratings and buyer insights further reveal growing expectations for domain expertise, flexible engagement models, and proactive innovation.