APAC insurtech funding halved to $4.1b

India captured roughly 45% of the regional capital between 2022 and 2025.

Asia-Pacific’s (APAC) insurance technology (insurtech) funding dipped from about $9.1b between 2018 and 2021 to around $4.1b between 2022 and 2025. 

The region’s number of deals also dropped from 383 to 202 over the same periods, according to NTT DATA’s Insurtech Global Outlook 2026.

Asia-Pacific’s insurtech market is moving away from challenger digital insurers and towards technology providers, infrastructure firms and insurance platforms, the report said.

The distribution of funding has also changed. China’s share declined, whilst the combined share of Singapore and Indonesia rose from about 12% to 35%. India’s share increased from roughly 25% to 45%.

NTT DATA said the shift reflects stronger investor interest in companies that provide technology, distribution and infrastructure to insurers rather than competing directly with them.

Recent funding and partnership activity includes Singapore-based bolttech’s $147m Series C round in 2025 and Indonesian insurance platform Qoala’s $47m Series C. 

Other examples cited in the report include Southeast Asian insurtech Igloo, the Smartpay and Chubb partnership in Japan, and Indian platforms InsuranceDekho, MediBuddy and Perfios.

The change comes as Asia faces a large insurance protection gap. Swiss Re estimates that 92% of the region’s natural catastrophe losses in 2025 were uninsured.

NTT DATA said this gap increases the need for insurance products that are built into other services, use data to reduce risks before losses occur and operate through partnerships between insurers, technology companies and other service providers.

Globally, cyber risk is now the largest source of uninsured business risk, according to the report. 

Uninsured cyber losses are projected to rise from $171b in 2023 to more than $700b by 2030.

Climate-related uninsured losses, including those caused by extreme weather, floods and wildfires, total $180b, whilst liability claims have risen by 57%.

The report also found a wide gap between the use of artificial intelligence by insurance employees and its deployment by insurers.

About 66% of insurance employees use AI tools, but only 22% of insurers have moved AI systems into full production.

NTT DATA said the main barriers were trust, governance and operating structures rather than the technology itself. 

It is estimated that AI-based automation and process improvements could reduce insurers’ operating costs by up to 35%.

The report called for insurers to use AI for continuous risk monitoring, decision-making and prevention, whilst maintaining explainability, regulatory compliance and human oversight.

It also pointed to growing demand for more personalised and prevention-focused insurance services. 

Spending on hyper-personalisation is growing at an annual rate of more than 35%, whilst 67% of employers are increasing spending on prevention programmes.

Embedded insurance, where cover is offered as part of another product or service, exceeded $116b in 2025, according to the report.

Financing conditions are also changing. Insurance initial public offerings in the US are at their highest level in 20 years, whilst debt financing for start-ups has reached $9.5b and now exceeds equity funding.

The Insurtech Global Outlook 2026 is based on insurance industry data, market trends and risk indicators covering 2023 to 2025. Sources include insurer disclosures, third-party research and NTT DATA analysis.