Robust integration of artificial intelligence (AI) capabilities can reduce annual expenses by as much as $480 billion in P/C, according to the 2025 edition of the ACORD Insurance Digital Maturity Study.

The report analyzed 210 of the world’s largest insurance carriers across all major lines of business, including property and casualty, life and reinsurance.

The study found that only one quarter have truly digitalized the value chain, while more than 10 percent are not appreciably leveraging digital technologies within their current business process.

More than half report they are still exploring how digitalization can be applied against their business model.

A key addition to this year’s study is the “AI & Digital Maturity” addendum, ACORD noted, examining the potential impact of AI across an insurance enterprise and they ways AI can help less digitally mature organizations overcome common hurdles and accelerate their digital development.

Robust integration of AI capabilities can reduce expenses by as much as 14.6 percent for P&C insurers, an estimated $480 billion in savings across the industry annually.

“The reality of AI and its impact on the industry are widely recognized, and implementation is well underway,” said ACORD CEO Bill Pieroni. “We have seen the performance gap between Digital Competitors vs. Laggards steadily grow year after year – AI leverage is further accelerating that differentiation. A clear strategy and resource allocation around AI, as well as a full spectrum of digital capabilities, is necessary for any insurer to remain competitive in coming years.”

When segmented into digital maturity categories, the analysis indicated that increasing levels of digital maturity drive improved value creation and more digitally mature organizations significantly outperformed the study average.

Higher levels of digital maturity are associated with more prevalent leveraging of ACORD Data Standards throughout the enterprise as they support capabilities across the entire value chain.

The full 2025 ACORD Insurance Digital Maturity Study white paper, including strategic and execution imperatives for successfully developing digital capabilities, is free to download for ACORD members.

For more information or to download the white paper, please visit www.acord.org/research.