APAC Insurtech Funding Halved to $4.1 Billion as Investors Shift Focus
Funding for insurance technology startups in Asia-Pacific dropped sharply, with the region's total declining from $9.1 billion in 2018-2021 to $4.1 billion in 2022-2025, according to a report by NTT DATA.
The number of deals also fell, from 383 to 202 over the same periods, the consultancy's Insurtech Global Outlook 2026 showed.
Changing Investment Patterns
The decline signals a strategic shift in investor appetite. The report noted that Asia-Pacific's insurtech market is moving away from challenger digital insurers and toward technology providers, infrastructure firms, and insurance platforms.
India emerged as the dominant destination for insurtech capital, capturing roughly 45% of regional funding between 2022 and 2025, up from about 25% in the earlier period. Meanwhile, China's share declined. The combined share of Singapore and Indonesia rose from approximately 12% to 35%.
Recent Deals and Partnerships
Notable funding rounds include Singapore-based bolttech's $147 million Series C in 2025 and Indonesian platform Qoala's $47 million Series C. Other examples cited by NTT DATA include Southeast Asian insurtech Igloo, the Smartpay and Chubb partnership in Japan, and Indian platforms InsuranceDekho, MediBuddy, and Perfios.
Insurance Protection Gap
NTT DATA highlighted the region's large insurance protection gap. Swiss Re estimates that 92% of Asia's natural catastrophe losses in 2025 were uninsured. This gap, the report said, underscores the need for insurance products embedded in other services, data-driven risk reduction, and partnerships between insurers, technology companies, and service providers.
Global Trends
Globally, cyber risk is now the largest source of uninsured business risk. Uninsured cyber losses are projected to rise from $171 billion in 2023 to more than $700 billion by 2030. Climate-related uninsured losses total $180 billion, while liability claims have increased 57%.
AI Adoption Gap
The report also identified 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 technology. AI-based automation could reduce insurers' operating costs by up to 35%.
Embedded Insurance Growth
Spending on hyper-personalization is growing at an annual rate of more than 35%, while 67% of employers are increasing spending on prevention programs. Embedded insurance, where coverage is offered as part of another product or service, exceeded $116 billion in 2025.
Financing Conditions
Insurance initial public offerings in the United States are at their highest level in 20 years, and debt financing for startups has reached $9.5 billion, now exceeding equity funding.
Methodology
NTT DATA's 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 the consultancy's own analysis.
