The report finds that cybersecurity is now the top business insurance risk with uninsured losses in the sector projected to rise from $171 billion in 2023 to over $700 billion by 2030. Meanwhile, climate related uninsured losses such as extreme weather, floods and wildfires, now total $180 billion and liability claims have risen by 57%.
NTT DATA, a prominent provider of AI, digital business and technology services, in its latest Insurtech Global Outlook 2026 report, found the insurance industry is at a structural inflexion point due to growing uninsured losses and liability claims.
The report delivers a clear message: risk is accelerating and standing still is no longer an option.
The report finds that cybersecurity is now the top business insurance risk with uninsured losses in the sector projected to rise from $171 billion in 2023 to over $700 billion by 2030. Meanwhile, climate related uninsured losses such as extreme weather, floods and wildfires, now total $180 billion and liability claims have risen by 57%.
In the face of this increasingly volatile market, building AI-native and agentic operations could deliver cost savings in automation and process optimization of up to 35% for insurers. There is, however, a bottleneck.
Only 22% of insurers have scaled AI to the production phase, even as 66% of the insurance workforce has adopted AI tools. The main constraints are not technology-related; they are related to trust, governance and operating models that were not designed for AI.
“The insurance industry is facing structural shifts in the face of unprecedented market volatility and uncertainty. There are, however, clear opportunities for insurers to embrace AI-driven solutions to bolster trust and resilience,” said Bruno Abril, Global Head of Insurance, NTT DATA, Inc.
“In 2026, the insurance industry is navigating market volatility while accelerating the adoption of AI-driven models to strengthen resilience and trust. This is not simply a response to disruption. It reflects a deeper transformation, where insurers move beyond paying claims to architecting resilience through risk intelligence, responsible autonomy, prevention, and sovereign ecosystems.”
In addition, the report finds US insurance IPOs are at a 20-year high and startups are borrowing more as debt financing reaches $9.5 billion, surpassing equity funding.
Four industry snapshot: the state of insurance in 2026
– Risk complexity is widening the protection gap, with $162B in NatCatlosses (H1 2025) and a $4.88M average data breach cost.
– 54%+ of adults use Generative AI, reshaping expectations towardinstant, personalized experiences.
– Prevention-led models are improving loss ratios and operationalefficiency through real-time sensing and dynamic underwriting.
– Collaboration across insurers, insurtechs, and ecosystem partners isaccelerating platform transformation and embedded growth.
To help insurers address these challenges, the report highlights four key findings and offers actionable guidance to capitalize on the opportunities they present:
Build resilience into operating models: As risks grow faster than insured capacity, insurers must shift from reactive payouts to continuous risk detection, decisioning and prevention using data, AI and simulation.
Deploy responsible AI at scale: To promote adoption, AI native, agentic operations require explainability, compliance and human accountability built in from the start.
Deliver empathetic, prevention-first AI-native customer experiences: Hyper personalization is growing at 35%+ CAGR and 67% of employers are increasing prevention spending, reflecting demand for empathetic, prevention first insurance.
Build value through ecosystems: Partner ecosystems, supported by open standards and regulation-ready infrastructure, are invaluable drivers of growth, with the embedded insurance market having exceeded $116 billion in 2025.