Funding for insurance technology (insurtech) in the Asia-Pacific region has declined significantly, according to a new report from NTT DATA. The Insurtech Global Outlook 2026 reveals that regional insurtech funding fell from approximately $9.1 billion between 2018 and 2021 to around $4.1 billion between 2022 and 2025. The number of deals also dropped from 383 to 202 over the same periods.

The report highlights a strategic shift in the APAC insurtech market, moving away from challenger digital insurers and towards technology providers, infrastructure firms, and insurance platforms. This change is reflected in the distribution of funding: China's share declined, while the combined share of Singapore and Indonesia rose from about 12% to 35%. India's share increased from roughly 25% to 45%.

NTT DATA attributes the shift to stronger investor interest in companies that provide technology, distribution, and infrastructure to insurers rather than competing directly with them. Recent funding and partnership activity includes Singapore-based bolttech’s $147 million Series C round in 2025, Indonesian insurance platform Qoala’s $47 million Series C, and other examples such as Igloo in Southeast Asia, the Smartpay and Chubb partnership in Japan, and Indian platforms InsuranceDekho, MediBuddy, and Perfios.

The shift comes as Asia faces a large insurance protection gap. Swiss Re estimates that 92% of the region’s natural catastrophe losses in 2025 were uninsured. According to NTT DATA, this gap increases the need for insurance products that are built into other services, use data to reduce risks before losses occur, and operate through partnerships between insurers, technology companies, and other service providers.

Globally, cyber risk is now the largest source of uninsured business risk, the report notes. Uninsured cyber losses are projected to rise from $171 billion in 2023 to more than $700 billion by 2030. Climate-related uninsured losses, including those caused by extreme weather, floods, and wildfires, total $180 billion, while liability claims have risen by 57%.

The report also highlights a significant gap between the use of artificial intelligence by insurance employees and its deployment by insurers. About 66% of insurance employees use AI tools, but only 22% of insurers have moved AI systems into full production. NTT DATA says the main barriers are trust, governance, and operating structures, not technology. It estimates that AI-based automation and process improvements could reduce insurers’ operating costs by up to 35%.

The report calls for insurers to use AI for continuous risk monitoring, decision-making, and prevention, while maintaining explainability, regulatory compliance, and human oversight. It also points to growing demand for more personalized and prevention-focused insurance services. Spending on hyper-personalization is growing at an annual rate of more than 35%, while 67% of employers are increasing spending on prevention programs. Embedded insurance, where cover is offered as part of another product or service, exceeded $116 billion in 2025.

Financing conditions are also changing. Insurance initial public offerings in the US are at their highest level in 20 years, while debt financing for start-ups has reached $9.5 billion and now exceeds equity funding.

The Insurtech Global Outlook 2026 is based on insurance industry data, market trends, and risk indicators covering 2023 to 2025. Sources include insurer disclosures, third-party research, and NTT DATA analysis.