NTT DATA Report Warns Insurance Industry at a Tipping Point as Uninsured Risks Surge and AI Adoption Lags
Editor 
NTT DATA’s Insurtech Global Outlook 2026 reveals that accelerating cyber, climate and liability risks are reshaping the insurance sector, making AI-driven resilience and prevention-first operating models a business imperative.
NTT DATA, has announced its latest Insurtech Global Outlook 2026 report, finding the insurance industry is at a structural inflection 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.
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.
"The future of insurance will be shaped by ecosystem-driven innovation, intelligent automation and data-led decision-making. As new risks emerge and customer expectations evolve, insurers must strengthen collaboration across technology, distribution and service networks to create more adaptive, resilient and customer-centric business models."
— Bruno Abril, Global Head of Insurance, NTT DATA, Inc.
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.
“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 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.”
