The insurance industry is at a structural inflection point due to growing uninsured losses and liability claims, says a new report from NTT DATA.
NTT DATA’s latest InsurTech Global Outlook 2026 report, finds that cybersecurity is now the top business insurance risk with uninsured losses in the sector projected to rise from $171bn in 2023 to over $700bn by 2030. Meanwhile, climate related uninsured losses such as extreme weather, floods, and wildfires now total $180bn 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 optimisation 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.
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 personalisation 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 $116bn in 2025.
NTT DATA Global Head of Insurance Bruno Abril said that the insurance industry is facing structural shifts in the face of unprecedented market volatility and uncertainty, but there are clear opportunities for insurers to embrace AI-driven solutions to bolster trust and resilience.