WTW’s 2026 Advanced Analytics & AI Survey asked 59 P&C insurers in the US and Canada, drawing insights from senior executives across analytics, actuarial, and strategy functions.

The survey found that insurers using more sophisticated analytics achieved combined ratios six percentage points lower and premium growth three percentage points higher than slower adopters between 2022 and 2024.

Laura Doddington, Head of Personal and Commercial Lines, Insurance Consulting and Technology, North America at WTW, said, “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 80% of insurers now rely on advanced rating and pricing models, with an additional 11% planning to implement them soon, making predictive rating models almost universal.

Adoption of claims advanced analytics has been slower, with only one-third or fewer carriers currently using these tools for fraud detection (33%) or severity assessment (29%). However, these figures are expected to rise to 65–70% within the next two years. An additional 36% plan to introduce straight-through processing in claims workflow automation, up from the current 14%.

Although large language models (LLMs) and generative AI are relatively new to the insurance industry, over half of respondents report already using them, with another 29% planning adoption within the next two years. While only 16% currently use AI to augment human underwriting, this figure is expected to rise sharply, with 60% of insurers planning to prioritise this by 2028.

Survey respondents identified data concerns and IT bottlenecks as the main challenges in adopting advanced analytics. 42% cited data-related issues—such as poor quality and limited accessibility—and inadequate IT support as significant barriers.

Building an analytics-driven culture also remains a work in progress. Only 20% report having a well-defined analytics strategy to guide daily activities, and just 12% regularly offer analytics training to employees.

Doddington added, “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.”

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Insurers reported an overall 2.9% increase in Q4 2025, down from 5.6% in Q4 2024. Price growth moderated across most commercial lines, with commercial property insurance seeing falls in premiums and general and products liability increases easing. Commercial multi-peril and business-owners policies recorded smaller rises than in the previous quarter.

Excess and umbrella liability continued to experience the largest increases, though lower than the prior quarter, while commercial motor insurance maintained strong growth.

Small and mid-market accounts saw more modest increases, and pricing for large accounts continued to rise at a slower pace. Several other lines also saw declines, reinforcing the broader trend of moderation in the market.

“Commercial insurance pricing continued to moderate in the fourth quarter, reflecting a more stable market,” added Yi Jing, senior director, Insurance Consulting and Technology (ICT), WTW. “While some lines continue to see increases, others are flattening or declining, highlighting a more measured approach across the market.”

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In its recent Aerospace Insurance Market Renewal Outlook, WTW noted that while rumoured reinsurance increases were lower than expected at the 2026 renewals, further price rises in the primary treaty reinsurance layer could make purchasing this layer uneconomical. This would force direct insurers to retain a larger proportion of risk on their own balance sheets, potentially leading to tighter scrutiny of underwriting decisions.

Capacity in the aerospace reinsurance market remains widely available. WTW said it will continue to monitor this area closely, as movements here can affect direct insurers’ underwriting strategies.

WTW stated that the strong capacity in the aerospace insurance market continues to provide insureds with a degree of choice and competitive tension. This environment can help moderate pricing outcomes, although challenges can arise when seeking surplus capacity.

Major claims in 2025 put the aviation insurance sector under the spotlight, with underwriters needing to justify their strategies to senior management, particularly where profit margins may appear constricted at current pricing levels.

For its 2026 outlook, WTW said, “The key message of the Q3/4 2025 edition of the Willis Aerospace Insurance Market Update was that the market had not moved away from its relatively soft position yet, and that message still broadly holds true. Aerospace insurers are still operating in a very competitive environment, which has held back price increases for insureds that are profitable for insurers, demonstrate proactive risk management strategies and engage with their insurance partners in a thoughtful manner.

“While conditions remain good for buyers, insureds should always prepare ahead in case any capacity reduction leads to changes.

“Even now, insurers are examining their portfolios and strategies towards specific sub-sectors. The best advice for insurance buyers is to identify the areas of focus for insurers and develop a strategy with your broker to address these in a structured and timely way. Good data and early engagement remain key for achieving the best results.”

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The report, titled “Hidden threats, real impacts: gray-zone aggression”, highlights a shift in the market. While these tactics were viewed as niche concerns in the aviation and shipping sectors only five years ago, they are now disrupting markets and testing the resilience of every major industry.

Given this volatile environment, businesses must recognise they are no longer by standards, according to the report. In order to strengthen corporate defences and maintain business profitability, executives need to anticipate, adapt and collaborate, analysts highlight.

Sam Wilkin, Director of Political Risk Analytics at Willis, a WTW company, said: “Our societies are only as resilient to gray-zone attacks as their weakest link. The corporate sector must not be that weak link.

“The past few months of gray-zone attacks in Europe have shown us that strategic foresight, operational readiness and specialty solutions designed to address ambiguity must be baked into corporate risk management programs across business sectors. I hope companies will use the scenarios to challenge traditional boundaries of risk ownership and identify unexpected connections between risks.”

The report outlines several critical steps for risk and insurance leaders to strengthen their defences. This includes a need to re‑evaluate insurance wordings, triggers and limits, as Willis warns that legacy definitions of conflict may leave “gaps” in coverage when dealing with the ambiguity of gray zone events.

The report also advises businesses to view supply chains through a geopolitical lens, focusing on diversification and friendshoring to avoid chokepoints disruptions.

Additionally, gray-zone aggression should be treated as an enterprise-level risk, the report advises, requiring continuous monitoring and frequent scenario refreshes.

Moreover, crisis management teams must be trained to make decisions under uncertainty, particularly when the source of the disruption is not immediately clear.

Elisabeth Braw, Senior Fellow, Atlantic Council, stated: “Today’s gray-zone tactics exploit the way our economies are connected – and that puts the private sector directly in the line of fire. Hostile countries are targeting companies precisely because doing so creates disruption and uncertainty while at the same time having two distinct advantages: plausible deniability and minimal risk of retaliation.

“This research makes clear that treating gray-zone aggression as a temporary nuisance is a mistake. Organisations that fail to recognise gray-zone activity as a material business risk will find themselves reacting too late, with real consequences for business operations, confidence and resilience.”

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The position has been created to enhance integration, representation and strategic delivery across the company’s Placement and Broking Solutions functions.

In her expanded role, Krista Cinotti will lead programmes focused on strengthening operating standards, encouraging innovation, refining client segmentation and promoting closer collaboration across North America.

She will also serve as North America Executive Neuron Sponsor, helping advance the use of data and technology capabilities throughout the organisation.

Cinotti will continue to head the Middle Market & Select business and the Incoming Specialty Teams, maintaining oversight of these areas alongside her new responsibilities.

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Based in London, Lewkowicz will spearhead WTW’s global P&C capital modelling and reinsurance pricing solutions, driving innovation, business development and tailored offerings that help insurers better understand their risk and capital needs.

He brings nearly two decades of industry experience spanning capital modelling, reinsurance pricing and reserving. He joined WTW in January 2022 and has since led the development of the risk analytics platform Igloo.

Prior to this, Lewkowicz served as a contractor at Markel International. He was also Head of Actuarial at Augmize, where he led the actuarial function and delivered automated granular loss modelling capabilities.

Earlier in his career, he held various capital contractor roles at Enstar, ACE Insurance and Travelers.

Charlie Kefford, Global Proposition Leader, P&C Insurance Technology at WTW, said, “This appointment reflects our commitment to investing in exceptional talent and strengthening our capital modelling and reinsurance pricing capabilities. George brings a wealth of experience and a proven track record of delivering results, which will be instrumental in enabling our clients to succeed.”

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In his new role, based in London, Varley will lead the global strategy for commercial lines pricing and underwriting.

His role will involve assisting insurers in modernising and succeeding within the changing market. This focus area is strategically vital for WTW worldwide, with the Insurance Consulting and Technology business aiming for continuous double-digit growth by supporting the transformation of the commercial insurance sector.

This appointment marks a return to WTW for Varley, who is rejoining the company from Allianz Commercial UK, where he most recently served as Chief Underwriting Officer. During his tenure at Allianz, he also held the roles of Chief Data and Analytics Officer.

Prior to this, Varley spent five years as Senior Director for Commercial Lines Pricing and
Underwriting at WTW, specialising in the development of analytics tools for the commercial insurance market.

Commenting on the appointment, Charlie Kefford, Global Proposition Leader, P&C Insurance Technology, WTW, said: “WTW has an established track record of leading the market through changes in pricing and underwriting. We continue to invest, to ensure that our capability remains at the cutting-edge of market practice, which is developing rapidly through advancements in AI and digitalisation.”

“I am delighted that Chris has joined our team. He has an outstanding track record in this area and brings significant experience and capability to further develop our solutions and grow our team.”

Varley said: “I’m excited to be joining the team at such a critical moment in the analytics revolution taking place in commercial insurance. I look forward to working with our clients around the world to unlock competitive advantage through the deployment of sophisticated analytics in underwriting, pricing and portfolio management.”

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After completing the sale of the treaty reinsurance operations of Willis Re to Arthur J. Gallagher & Co. in late 2021, WTW confirmed in late 2024 that it intended to re-enter the market via a joint venture with private investment firm, Bain Capital.

Since then, Willis Re has made numerous hires as the build-out continues. And in April of last year, WTW’s Chief Executive Officer (CEO), Carl Hess, stressed that the joint venture is progressing well.

During the recently held WTW fourth quarter and full year 2025 earnings call with analysts, leaders at WTW were questioned on Willis Re, specifically if anything had been learned from the 1.1 2026 reinsurance renewals.

“So, we’re very happy with the trajectory of the build-out of Willis Re, it is going according to plan. And the business was able to participate in the 1.1 renewal cycle, and we’re very happy with how that went from a business and operational perspective,” said CFO Krasner.

In today’s results announcement, WTW revealed that it expects Willis Re to be a headwind on Adjusted Diluted EPS of ~$0.30 this year, stating that the remaining equity investments in the interest in earnings of associates line are not expected to be material in 2026.

Krasner emphasised on the call that WTW will continue to make investments in its reinsurance joint venture as it scales its newly launched commercial operations.

During the Q&A, WTW was also quizzed on whether a fully operational Willis Re would make the group incrementally competitive in winning some of the digital infrastructure business, an area WTW highlighted a strong and growing presence, supporting five of the 10 largest data centre developers globally.

Lucy Clark, President of Risk & Broking at WTW, responded: “In terms of will the reinsurance business be supportive? Sure. But, we already have a ton of work in that segment, and really using the work that we’ve done with some of our largest global owners and developers, plus many of the top data centre construction companies. The guys have just announced that they’ve developed an integrated global risk framework to respond to this sector’s risk profile, one that is increasingly systemic, interconnected and difficult to address through traditional insurance solutions by themselves.

“Their framework is designed to address the full spectrum of risk facing data centre owners, operators and investors across the entire life cycle of the project, from development and construction through steady-state operations. The framework really gives a holistic view of both current and emerging risks, including those that are systemic, difficult to model or still evolving.

“So, we continue to see high demand for our offering from new business, of course, but also from the strong pipelines that are developed by our existing clients.”

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For the fourth quarter of 2025, WTW generated revenue of $2.9 billion, down 3% year-on-year on a reported basis, but up 6% on an organic basis. Income from operations increased by 13% to more than $1 billion, with an operating margin of 34.6%, compared with 29.7% a year earlier. Net income totalled $736 million in Q4’25, a decrease of 41% year-on-year, as adjusted net income fell by 3% to $784 million.

Within the firm’s Risk & Broking segment, total revenue increased by 10%, or 7% on an organic basis to $1.3 billion, driven by higher levels of new business activity and strong client retention globally. However, Insurance Consulting and Technology organic revenue declined modestly in the quarter, reports WTW, reflecting clients’ continued caution in managing expenses amid ongoing economic uncertainty.

Risk & Broking operating income increased by 14% year-on-year to $435 million in Q4’25 with an operating margin of 34.7%, compared with the prior year’s 33.5%, primarily driven by operating leverage from strong organic revenue growth.

In the broker’s Health, Wealth & Career business, total revenue decreased by 11% on a reported basis but increased by 6% on an organic basis to $1.7 billion, driven by the sale of TRANZACT. The segment’s operating income decreased by 6% to $729 million with an operating margin of 44.3%, compared with 41.9% in Q4’24.

For the full year 2025, WTW generated revenue of $9.7 billion, a 2% year-on-year decrease on a reported basis, but an increase of 5% on an organic basis, again driven by the sale of TRANZACT. Income from operations for the year increased by a significant 256% to $2.2 billion, as the operating margin increased to 23% from 6.3%. Net income for 2025 increased to a gain of $1.6 billion from a loss of $88 million in 2024, as adjusted net income increased by 1% to $1.7 billion.

For 2025, Risk & Broking generated revenue of $4.3 billion, an increase of 7% on a reported basis or 6% on an organic basis.

The Health, Wealth & Career segment delivered revenue of $5.3 billion in 2025, a year-on-year decrease of 9% on a reported basis, with organic growth of 4%.

In terms of financial considerations for the year ahead, WTW says that it expects its Willis Re joint venture to be a headwind on Adjusted Diluted EPS of ~$0.30, noting that the remaining equity investments in the interest in earnings of associates line are not expected to be material in 2026.

WTW also expects share repurchases of $1 billion or greater, subject to market conditions and potential capital allocation to organic and inorganic investment opportunities.

Also, on the Newfront acquisition, which completed last month, WTW expects 2026 post-close revenue of around $250 million and an adjusted EBITDA margin of ~26%.

Carl Hess, WTW’s Chief Executive Officer, commented: “WTW had strong performance across our businesses driven by our team’s relentless focus and consistent execution of our strategy. We delivered on our financial targets and strengthened our business through strategic investments in talent and innovation to accelerate performance, enhance efficiency and optimize our portfolio. Our strong momentum and continued progress on our strategic objectives give us confidence as we enter 2026.”

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This expansion strengthens Willis’ global reach and ensures clients in these regions have direct access to sophisticated risk solutions.

Operating as one global D&F team, this structure allows Willis to efficiently coordinate access to over 400 insurance markets worldwide.

By matching the appropriate risk with the most suitable market, through the correct broker – be it local, wholesale, or Facultative – Willis ensures streamlined service delivery, the firm noted.

Garret Gaughan, Global Head of Direct & Facultative at Willis said: “We’re delighted to announce the addition of two further global hubs. We recognise that clients are increasingly seeking to complement traditional market access with the competitive advantages offered by emerging and established international marketplaces.

“Expanding our global hubs enables us to meet this demand, positioning us closer to the talent, expertise and cultural dynamics that define these local markets. Madrid naturally strengthens our connectivity with Latin America, while Dubai enhances our reach across the broader Middle East region. By deepening our global footprint and strengthening cross‑market collaboration, we ensure clients benefit from the most competitive, future‑focused solutions available, wherever they are in the world”.

Willis’ enhanced Wholesale market hubs now span London, Madrid, Bermuda, Miami, Singapore, Dubai, Hong Kong and Shanghai, alongside its local Facultative hubs in every region around the world.

Eleni Lykoudi, Head of CEEMEA said: “We are delighted to announce the new D&F Property and Casualty offering in Dubai. This reflects our commitment to strengthening our regional presence, enhancing service capabilities for our clients and supporting long-term growth. This matches the extensive opportunity we see across the CEEMEA region.”

Ivan Sainz, Head of Spain said: “The expansion of the global hub in Madrid enables us to further support clients by drawing on insight and experience from across industries and geographies.

“Applying lessons learned in one market to challenges emerging in another strengthens our ability to respond to complex and evolving risk needs. This reflects the significance of the Madrid and broader Spanish marketplace and how it will be a critical international access point of the future.”

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