This report identifies key demand-side trends in the property and casualty (P&C) insurance industry that can help enterprises fine-tune their digital strategies. It also provides an overview of enterprise challenges in the P&C insurance industry based on Avasant’s assessment.
Why read this Market Insights?
As the property and casualty (P&C) insurance industry pivots toward an AI-first era, it faces intensifying climate risks, escalating cyber threats, and rising customer expectations. Insurers are increasingly embedding Gen AI/Agentic AI across underwriting, claims, and customer engagement to accelerate decision-making and enhance operational efficiency. AI-powered climate intelligence, first notice of loss (FNOL) automation, and advanced cyber coverage are transforming workflows and elevating the customer experience, while ESG-aligned parametric products continue to gain traction. To navigate this shift, enterprises should collaborate with service providers to co-innovate on AI, geospatial intelligence, and mobile-first tools, streamlining operations and building resilience in an evolving risk landscape.
The Property and Casualty Insurance Digital Services 2025 Market Insights™ aids enterprises in the P&C insurance sector in identifying important market trends and challenges for any digital project they participate in.
Methodology
The industry insights presented in this report are based on the following: our ongoing interactions with enterprise CXOs and other key executives; targeted discussions with service providers, subject matter experts, and Avasant Fellows; analyst insights from primary and secondary research; and lessons learned from consulting engagements.
Table of contents
About the report (Page 3)
Executive summary (Pages 4–7)
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- Defining the P&C insurance digital services scope
- Key drivers and enterprise response
- Avasant recognizes 25 top-tier service providers supporting the P&C insurance industry in digital transformation
Demand-side trends (Pages 8–13)
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- About 3-in-4 insurers spent over 5% of their digital budget on Gen AI/agentic AI in CY 2024 to achieve efficiency and productivity gains across the value chain
- Climate intelligence is no longer a selective enhancement in underwriting; it has evolved from a competitive differentiator to a mandatory foundation
- P&C insurers are reimagining the FNOL experience, from digital convenience to hyper-personalization, driven by AI, context-awareness, and emotional intelligence
- Cyber insurance has moved from a siloed specialty cover to an integrated and proactive pillar of P&C insurance, shaped by Gen AI threats and stricter oversight
- ESG-aligned parametric insurance gains momentum among P&C insurers to address climate, cyber, and community resilience risks
Key contacts (Page 14)
Read the Research Byte based on this report. Please refer to Avasant’s Property and Casualty Insurance Digital Services 2025 RadarView™ for detailed insights on the service providers and supply-side trends.