NTT DATA flags rising cyber, climate risks for SE Asia insurers

Insider Spotlight

• Cybersecurity has emerged as the biggest insurance risk globally, with uninsured losses projected to exceed $700 billion by 2030
• Southeast Asian insurers face mounting pressure from climate-related disasters, digital threats and widening protection gaps
• NTT DATA says AI-native operations could cut insurance costs by up to 35 percent, but adoption remains constrained by governance and trust issues
  
  

Insurance companies across Southeast Asia are under increasing pressure to adapt to a rapidly evolving risk landscape as cyber threats, climate-related disasters, and rising liability claims reshape the industry, according to NTT DATA's latest Insurtech Global Outlook 2026 report. 

The report found that cybersecurity has become the top business insurance risk globally, with uninsured losses expected to surge from $171 billion in 2023 to more than $700 billion by 2030. 

At the same time, climate-related uninsured losses from floods, extreme weather events and wildfires have reached $180 billion, while liability claims have risen by 57 percent.

For Southeast Asia, where economies face some of the world's highest exposure to natural disasters and are rapidly digitizing, the findings underscore the need for insurers to strengthen resilience and modernize operations.

Bruno Abril

NTT DATA global head of insurance 

Why it matters

The region's insurance sector is grappling with growing protection gaps as climate risks intensify and cyberattacks become more frequent. Countries such as the Philippines, Indonesia, Thailand and Vietnam are also seeing increased demand for digital insurance products as consumers and businesses embrace online services.

NTT DATA said artificial intelligence could help insurers navigate these challenges, with AI-native and agentic operations capable of delivering cost savings of up to 35 percent through automation and process optimization.

However, adoption remains uneven.

The report found that while 66 percent of insurance employees already use AI tools, only 22 percent of insurers have successfully scaled AI into production. According to NTT DATA, the primary barriers are trust, governance and operating models that were not built for AI-driven environments.

The big picture

The report identified four priorities for insurers seeking to remain competitive: building resilience into operating models, deploying responsible AI at scale, delivering prevention-first customer experiences and creating value through partner ecosystems.

Embedded insurance is also emerging as a key growth area, with the market exceeding $116 billion in 2025 as insurers increasingly integrate products into digital platforms and ecosystems.

"The insurance industry is facing structural shifts in the face of unprecedented market volatility and uncertainty. There are, however, clear opportunities for insurers to embrace AI-driven solutions to bolster trust and resilience," NTT DATA global head of insurance Bruno Abril said in a statement.

"In this report, we identify the key shifts that are shaping insurance in 2026 and translate them into actionable imperatives that can help insurers build long-term value for their businesses, their customers and society," Abril said. —Ramon C. Nocon | Ed: Corrie S. Narisma