APAC insurance IT budgets rise as AI reshapes spending priorities

Reducing costs increasing revenue and meeting regulations are emerging as key business goals.

Asia-Pacific’s (APAC) property and casualty (P&C) insurers are expected to increase technology spending by nearly 14% in 2026 as they invest more in artificial intelligence (AI), operational modernisation and business growth initiatives, despite ongoing economic pressures.

The findings come from Celent’s P&C Insurance IT Pressures & Priorities 2026 report, based on a survey of 175 P&C insurers across 26 countries. 

The study examined the factors influencing technology budgets, spending allocation and the adoption of emerging technologies, with a focus on the APAC market.

According to the report, IT spending amongst P&C insurers is expected to rise steadily between 2025 and 2027, with growth forecast across insurers of all sizes. 

Whilst inflation is expected to reduce some of the gains in real terms, insurers continue to channel investment into projects aimed at supporting new business growth and improving operational resilience.

The report found that the drivers of technology investment are changing. 

AI is becoming a more significant factor in spending decisions, whilst reducing IT costs, increasing revenue and meeting regulatory requirements are emerging as key business priorities.

Celent said IT spending continues to accelerate globally, with APAC insurers expected to record particularly strong growth in 2026.

However, the report also highlighted challenges facing the sector. Persistent inflation and broader economic pressures are expected to continue affecting insurers and could influence future investment decisions, even as technology remains a strategic priority.