What Does NTT DATA’s Insurtech Report Say About Risk?

A cascading impact from industries contending with escalating cyber risk is now becoming evident in insurance, where the sector is approaching a structural turning point.

As cyber threats, climate-driven losses and rising liability claims reshape the risk landscape, NTT DATA’s latest Insurtech Global Outlook 2026 report delivers a clear message: “Risk is accelerating and standing still is no longer an option”.

Cyber risk is now identified as the largest source of uninsured exposure globally, with uninsured losses projected to surge from US$171bn in 2023 to more than US$700bn by 2030.

At the same time, climate-related uninsured losses tied to floods, wildfires and extreme weather have reached US$180bn, while liability claims have risen by 57%.

Together, these pressures are forcing insurers to reassess traditional operating models and adopt technologies capable of addressing increasingly complex and interconnected risks.

“The insurance industry is facing structural shifts in the face of unprecedented market volatility and uncertainty,” says Bruno Abril, Global Head of Insurance at NTT DATA.

“There are, however, clear opportunities for insurers to embrace AI-driven solutions to bolster trust and resilience.

“In this report, we identify the key shifts that are shaping insurance in 2026 and translate them into actionable imperatives that can help insurers build long-term value for their businesses, their customers and society.”

AI scaling remains a problem of trust

Against this backdrop, the need for process optimisation is intensifying, with agentic AI emerging as a potential solution.

According to NTT DATA, automation could deliver cost reductions of up to 35%, yet a clear gap persists between adoption and full-scale deployment.

While 66% of insurance employees already use AI tools in their daily workflows, only 22% of insurers have successfully scaled these solutions into production environments.

Notably, the obstacles are less about technology itself and more about governance, trust, compliance and entrenched legacy operating models.

Building operational resilience 

The report underscores the growing urgency for insurers to move beyond traditional, claims-based reactive models towards continuous risk monitoring and decision-making.

As risks continue to outpace insured capacity, insurers are being encouraged to leverage data, AI and simulation technologies to identify threats earlier and intervene before losses materialise.

Achieving this requires a shift towards AI-native operations, integrating agentic systems directly into core processes.

This, in turn, demands responsible AI deployment at scale, with explainability, compliance and human oversight embedded throughout.

This evolution also mirrors shifting customer expectations, with hyper-personalised insurance services expanding at an annual rate exceeding 35%.

Demand for prevention-focused offerings is also rising among employers, with 67% reporting increased investment in preventative measures.

Consequently, insurers are being urged to deliver more empathetic customer experiences that blend personalised support with proactive risk mitigation.

The changing insurance market

In parallel, US insurance IPO activity has reached a 20-year high, signalling renewed investor confidence in the sector.

Funding dynamics are also shifting, with debt financing climbing to US$9.5bn and overtaking equity funding.

The report further highlights partner ecosystems as a key growth lever.

With the embedded insurance market exceeding US$116bn in 2025, insurers are increasingly turning to collaboration, open standards and regulation-ready infrastructure to unlock new revenue streams and broaden customer reach.

As cyber risk intensifies and market volatility persists, NTT DATA’s conclusion is clear: insurers that embrace AI, prioritise prevention and strengthen ecosystem partnerships will be best positioned to succeed in the years ahead.