NTT DATA Report Outlines Escalating Insurance Risks and Hurdles in AI Scaling

A widening divide has emerged between escalating global risks and the insurance sector's capacity to manage them, according to a new briefing from NTT DATA. The company’s Insurtech Global Outlook 2026 reveals that the industry has hit a critical structural turning point, fuelled by a surge in uninsured losses, rising liability claims, and shifting operational pressures.

Topping the list of corporate insurance threats is cybersecurity. The report forecasts that uninsured losses stemming from cyber incidents will skyrocket from £135 billion ($171 billion) in 2023 to over £550 billion ($700 billion) by 2030. Meanwhile, climate-driven uninsured losses spurred by extreme weather, flooding, and wildfires have already climbed to £142 billion ($180 billion). Compounding these challenges, liability claims have jumped by 57%, creating a far more unpredictable environment for underwriters

To address these intense operational strains, the report points to the immense potential of artificial intelligence. Transitioning to AI-native and agentic operations could unlock cost reductions of up to 35% by automating tasks and streamlining workflows.

However, a massive bottleneck remains between initial adoption and full-scale deployment. Although 66% of the insurance workforce utilises AI tools in some capacity, a mere 22% of firms have managed to roll out AI successfully across their live production environments. NTT DATA notes that this roadblock stems from issues surrounding governance, corporate trust, and rigid operating models rather than flaws in the technology itsel

The industry’s financial landscape is also undergoing a major transformation. US insurance initial public offerings (IPOs) have surged to a 20-year high, while startup debt financing has soared to £7.5 billion ($9.5 billion), overtaking traditional equity funding.

To help insurers adapt to this turbulent landscape, the report suggests focusing on four strategic pillars:

• Proactive Resilience: Rather than simply paying out claims after an event, insurers must pivot toward continuous risk identification and prevention. This shift requires leveraging data, AI, and simulation tech to get ahead of threats.

• Responsible AI Scaling: For AI-native operations to gain widespread internal trust, systems must be built with transparency, compliance, and human accountability baked in from day one.

• Prevention-First Customer Experiences: Modern policyholders want to avoid disasters altogether. Hyper-personalisation is growing at an annual rate of over 35%, and 67% of employers are spending more on prevention initiatives, signalling a strong market demand for risk mitigation.

• Ecosystem Partnerships: Embedded insurance climbed past £91 billion ($116 billion) in 2025. Cultivating partner ecosystems backed by open standards and regulation-compliant tech will be vital for future growth.