Chubb Limited CB, the world’s largest provider of property and casualty (P&C) insurance and reinsurance, is considered a strong user of technology, particularly in commercial insurance, cyber insurance, underwriting analytics, and risk modeling. Chubb relies on technology mainly to improve underwriting, claims processing, cyber protection, and distribution efficiency.
Chubb is adopting technologies such as artificial intelligence, predictive analytics, industry data, and catastrophe models to assess business risks more accurately rather than relying only on traditional underwriting. These measures enable better pricing and risk selection, which usually lead to lower combined ratios and stronger underwriting profitability.
In its December 2025 investor presentation, Chubb made Digital Transformation one of its core strategic pillars and described it as a major driver of both profit growth and expense reduction over the next three to four years. Management stated that digital transformation would impact 70% of the organization over the next three years. The plan centers on AI, foundational technologies, data & analytics, organizational management skills, and technical expertise aimed at lowering expenses.
In an aid to support this shift, Chubb has made major technology investments, such as Data centers, Large-scale data ingestion capabilities, broad use of AI algorithms and large language models (LLM). It has also employed more than 3,500 engineers and expanded engineering hubs in Mexico, Greece, India and Colombia. CB also stated targets for the next three to four years, which include 20% headcount reduction, 1.5 percentage point improvement in combined ratio from expense savings, 85% of major underwriting and claims processes automated, and 85% of global gross written premium operating as a digital business.
Chubb also leverages technology to modernize insurance through its embedded insurance platform, Chubb Studio, which is one of the finest examples of how Chubb uses technology to gain a competitive advantage. Chubb Studio enables digital platforms worldwide to seamlessly integrate insurance products into their customer journeys via APIs and SDKs. In November 2025, Chubb, the world leader in insurance, launched a new AI-powered optimization engine within Chubb Studio. This new capability uses proprietary AI to analyze data and deliver personalized insurance offerings at the point of sale. The optimization engine enables Chubb's partners to increase customer engagement and build stronger brand loyalty with measurable growth by aligning protection solutions with the unique needs of their customer base.
These market-leading technologies underscore Chubb's commitment to providing the latest technology to benefit the digital partners and their customers.
Chubb uses technology as a competitive moat in underwriting and risk management, on the basis of which the insurer has historically maintained strong profitability compared with many insurers.
What About Other Players?
The Travelers Companies, Inc. TRV uses technology extensively to improve claims efficiency, catastrophe risk management and pricing discipline. Technology is a key reason Travelers has remained one of the strongest performers in commercial insurance. Travelers uses AI, predictive analytics, and big data to improve underwriting decisions, maintain pricing discipline and Lower claims costs. Travelers is considered one of the most technology-advanced commercial insurers, especially in analytics and catastrophe modeling.
The Progressive Corporation PGR is one of the most technology-driven insurers in the United States, and technology is a major reason for its strong underwriting performance and market-share gains. Unlike many insurers, Progressive uses technology directly as a competitive advantage in pricing, claims, customer acquisition and risk selection. Among large U.S. insurers, Progressive is often viewed as the best example of technology translating directly into underwriting advantage and shareholder returns. Its combination of telematics, AI pricing, and massive proprietary data creates a strong competitive moat.
CB’s Price Performance
Shares of CB have gained 12.2% in the past year, outperforming the industry.
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CB’s Undervaluation
The stock is overvalued compared with its industry. It is currently trading at a price-to-book value multiple of 1.55, higher than the industry average of 1.32. It carries a Value Score of B.
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Estimate Movement for CB
The Zacks Consensus Estimate for CB’s second-quarter 2026 moved down 0.6%, and the third-quarter 2026 EPS has moved up 0.3% in the past 30 days. The same for full-year 2026 and 2027 EPS has moved up 1.1% and 1.8%, respectively, in the past 30 days.
The consensus estimate for CB’s 2026 and 2027 EPS and revenues indicates a year-over-year increase.
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CB stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The Travelers Companies, Inc. (TRV): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).