Property and Casualty (P&C) Insurance State of the Market 2025

Economic volatility, climate-related losses, and rising regulatory expectations are causing the global Property and Casualty (P&C) insurance industry to significantly transform. Carriers are focused on modernizing legacy systems and adopting AI-powered tools to enhance efficiency, pricing accuracy, and customer satisfaction. The report explores how the claims function is transforming from a traditional cost center to a value-generating hub, with innovations such as AI-driven triage, litigation analytics, and intelligent automation redefining the claims life cycle. Meanwhile, macroeconomic pressures are prompting enterprises to pursue cost optimization through digital initiatives, global capability centers, and cloud adoption.

This report provides a comprehensive and forward-looking view of how P&C insurers are adapting their technology, operations, and sourcing strategies in response to structural market changes. It highlights the accelerating momentum behind claims modernization, the evolution of core platforms, and the increasing use of composable architectures and cloud-native infrastructure. The analysis also examines how carriers are shifting from broad transformation programs to targeted, high-impact initiatives focused on improving decision intelligence, automation, and customer engagement.

Insurers are also balancing growth with the integration of AI into operational workflows, the growing focus on regulatory readiness, and the shift toward ecosystem-based partnerships. The report provides a strategic lens on how technology, geography, and line-of-business dynamics influence IT and outsourcing investments across personal, commercial, and specialty lines.