A new report from NTT DATA identifies significant shifts affecting the insurance industry, pointing to a widening gap between rising risks and the sector’s ability to respond. According to the company’s Insurtech Global Outlook 2026, the industry has reached what it describes as a structural inflection point, driven by growing uninsured losses, increasing liability claims, and changing operational demands.
The report states that cybersecurity has become the top business insurance risk. Uninsured losses related to cyber incidents are projected to increase from $171 billion in 2023 to more than $700 billion by 2030. At the same time, climate-related uninsured losses, including those associated with extreme weather events, floods, and wildfires, have reached $180 billion.
Liability claims are also rising. NTT DATA reports that liability claims have increased by 57%, contributing to a more volatile operating environment for insurers.
Against this backdrop, the report highlights the potential of artificial intelligence to address operational pressures. According to the findings, AI-native and agentic operations could help insurers achieve up to 35% in cost savings through automation and process optimization.
However, the report notes a gap between AI adoption and implementation. While 66% of the insurance workforce has adopted AI tools, only 22% of insurers have successfully scaled AI into production environments. NTT DATA attributes this challenge primarily to issues involving trust, governance, and operating models rather than technological limitations.
The report also points to changes in the insurance industry financing and investment activity. U.S. insurance initial public offerings have reached a 20-year high, while startup debt financing has climbed to $9.5 billion, exceeding equity funding levels.
To help insurers navigate these developments, the report outlines four key areas of focus.
First, NTT DATA recommends building resilience into operating models. As risks continue to grow faster than insured capacity, the report suggests that insurers move beyond reactive claims payments and toward continuous risk detection, decision-making, and prevention supported by data, AI, and simulation technologies.
Second, the report emphasizes responsible AI deployment. It states that explainability, compliance, and human accountability should be integrated into AI-native and agentic operations from the outset to support broader adoption.
Third, NTT DATA highlights the growth of prevention-focused customer experiences. Hyper-personalization is growing at a compound annual growth rate exceeding 35%, while 67% of employers are increasing spending on prevention initiatives. According to the report, these trends reflect growing demand for prevention-first insurance approaches.
Finally, the report underscores the importance of partner ecosystems. NTT DATA notes that embedded insurance exceeded $116 billion in 2025 and identifies ecosystem partnerships, supported by open standards and regulation-ready infrastructure, as a key growth driver.
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.