APAC insurtech funding halved to $4.1b

Insurtech funding in the Asia-Pacific (APAC) region has more than halved, falling from approximately $9.1 billion between 2018 and 2021 to around $4.1 billion between 2022 and 2025. According to NTT DATA's Insurtech Global Outlook 2026, the number of deals also dropped sharply, from 383 to 202 over the same period.

The report indicates that the APAC insurtech market is pivoting away from challenger digital insurers and toward technology providers, infrastructure firms, and insurance platforms. This shift is reflected in the changing distribution of funding: 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 funding activity includes Singapore-based bolttech's $147 million Series C round in 2025 and Indonesian insurance platform Qoala's $47 million Series C. Other examples include Southeast Asian insurtech Igloo, the Smartpay and Chubb partnership in Japan, and Indian platforms InsuranceDekho, MediBuddy, and Perfios.

The funding decline 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 notes that this gap increases demand for insurance products embedded in other services, data-driven risk reduction, and partnerships between insurers, tech companies, and service providers.

Globally, cyber risk is now the largest 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, while liability claims have increased by 57%.

The report also highlights a gap in AI adoption: 66% of insurance employees use AI tools, but only 22% of insurers have moved AI systems into full production. Barriers include trust, governance, and operating structures rather than technology itself. AI-based automation could reduce insurers' operating costs by up to 35%.

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

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