APAC insurtech funding halved to $4.1b

Asia-Pacific's insurtech funding has halved to $4.1 billion in the 2022–2025 period from $9.1 billion in 2018–2021, according to NTT DATA's Insurtech Global Outlook 2026. The number of deals also declined sharply from 383 to 202 over the same periods.

The report notes a structural shift in the region's insurtech market: investment is moving away from challenger digital insurers toward technology providers, infrastructure firms, and insurance platforms. The distribution of funding has also changed significantly. 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%, capturing nearly half of the regional capital.

Recent deals include Singapore-based bolttech's $147 million Series C in 2025 and Indonesian insurance platform Qoala's $47 million Series C. Other examples include Igloo in Southeast Asia, the Smartpay-Chubb partnership in Japan, and Indian platforms InsuranceDekho, MediBuddy, and Perfios.

The funding decline comes amid a large insurance protection gap in Asia. Swiss Re estimates that 92% of the region's natural catastrophe losses in 2025 were uninsured. NTT DATA says this gap increases demand for embedded insurance, data-driven risk prevention, and partnerships between insurers, tech companies, and service providers.

Globally, cyber risk has become the largest source of uninsured business risk. Uninsured cyber losses are projected to rise from $171 billion in 2023 to over $700 billion by 2030. Climate-related uninsured losses total $180 billion, and liability claims have risen 57%.

The report also highlights a gap in AI adoption: 66% of insurance employees use AI tools, but only 22% of insurers have deployed AI systems in full production. Barriers include trust, governance, and operating structures. AI-based automation could reduce insurer operating costs by up to 35%. The report urges insurers to use AI for risk monitoring and prevention while maintaining explainability and human oversight.

Spending on hyper-personalization is growing at over 35% annually, and 67% of employers are increasing spending on prevention programs. Embedded insurance exceeded $116 billion in 2025. Financing conditions are also shifting: US insurance IPOs are at a 20-year high, and debt financing for startups has reached $9.5 billion, exceeding equity funding.

The Insurtech Global Outlook 2026 draws on insurance industry data, market trends, and risk indicators from 2023 to 2025.