Shaping the Future of Insurance: Deloitte's 2026 Insurance Outlook Unveils Strategies for Growth, Technological Innovation and Strategic Partnerships

Deloitte presented its 2026 Insurance Outlook  at the Insurtech Insights Asia 2025 event in Hong Kong, for which it served as the Knowledge Partner. During the event, Deloitte hosted a VIP luncheon for C-suite and senior executives from leading insurers and key players in the insurtech ecosystem, facilitating insightful discussions on the evolving insurance landscape and the transformative trends and innovations set to reshape the industry in the region over the next decade.

According to Deloitte's Outlook, heading into 2026, insurers face considerable uncertainty marked by economic volatility, geopolitical tensions, and escalating catastrophic risks. As a result, premium growth is expected to slow across property and casualty (P&C), life and annuity (L&A), and group insurance segments worldwide. To counter this trend, insurers should act proactively to refine their business models, prioritize modernization, and engage with stakeholders to position themselves more competitively in the market.

Arthur Calipo, Deloitte Asia Pacific Insurance Leader, says, “Despite global headwinds, the Asia-Pacific region remains the engine of global insurance growth. Life insurance premiums are projected to grow by 5.3% annually until 2035, fuelled by strong demand in China, India, and Southeast Asia. The region’s rising middle class, evolving customer demands, and widening protection gaps present unparalleled business opportunities. To thrive in this diverse market landscape, insurers must embrace demographic shifts, digital agility and resilience, and forge strategic partnerships to future‑proof their businesses.”

The annual outlook emphasizes that disruptive technologies such as AI, changing market landscapes, and shifting customer expectations are driving unprecedented transformation across the insurance industry.

"Artificial intelligence is advancing at a remarkable speed, with Gen AI and Agentic AI are already shaping the next stage of development in the insurance industry. Most insurance leaders are now focusing on practical AI use cases with clear return on investment and manageable risk," says Joanna Wong, Deloitte China Insurance Leader. "In Asia Pacific, leading insurers have already implemented a range of Gen AI-powered applications such as customer service bots, underwriting assistants, and claims triage systems. Notably, in the US, fraud detection is identified as one of the top five areas for developing or implementing Gen AI applications over the next 12 months."

Ben Woo, Deloitte China Insurance Digital Partner, says, “The success of AI applications in insurance hinges on data quality, system modernization, and robust security. While the industry is buzzing with activity, realizing its full value remains a work in progress as many insurers contend with fragmented data and outdated systems. Cyber resilience, effective data management, and legacy system modernization remain priorities, with many carriers undertaking multi‑year cloud transformations to strengthen agility and scalability.

"It is also important for insurers to embrace a customer-centric approach. Many insurers are forming partnerships to leverage continuous feedback loops and behavioural analytics, enabling them to create hyper-personalized product offerings and improve customer service."

Global insurers are also transitioning to agile capital models to stay competitive. As highlighted in the report, tightening reinsurance terms and increased risk retention are driving up loss ratios, adding to a US$183 billion global protection gap in the P&C segment. "Large corporates are responding by self‑insuring through captives and leveraging more agile capital models and collaborative financing vehicles such as cat bonds, sidecars, and other insurance-linked securities," notes Joanna Wong.

"In recent years, we have seen a growing trend in the establishment of captive insurers, as organizations seek greater control over their risk management strategies. Hong Kong’s regulatory framework and regional connectivity make it an attractive base for these strategies. There are currently six captive insurers in the city, underscoring the momentum behind Hong Kong’s rising role as a hub for risk management innovation in Asia."

“The life insurance sector in Asia Pacific is undergoing a significant transformation. Although the region already accounts for roughly 36% of global life insurance premiums, its potential remains vast, with penetration levels still relatively low—just 2.6% in emerging Asian markets and 5.4% in mature Asian markets. Insurers are encouraged by the rising demand for savings, retirement, and wellness‑related products, reflecting the evolving priorities of consumers across Asia Pacific’s diverse markets”, Arthur Calipo explains.

Innovative capital models and partnerships are broadening the insurance sector's role, creating new opportunities for collaboration with wellness, digital, and technology providers to address protection ga