Kathmandu. In the Asia-Pacific region, property and casualty (P&C) insurers are expected to increase their technology spending by about 14 percent in 2026. That’s because companies are investing more in artificial intelligence (AI), operational modernization, and business growth initiatives despite the current economic pressures.
These findings were made in Celant’s P&C Insurance IT Pressures and Priorities 2026 report. The report is based on a survey of 175 P&C insurance companies in 26 countries.
The study examined factors influencing technology budgeting, cost allocation and adoption of new technologies, focusing on the Asia Pacific market. According to the report, IT spending among P&C insurance companies is expected to grow steadily between 2025 and 2027.
However, inflation is expected to erode some of the benefits. Insurance companies have continued to invest in projects aimed at supporting new business growth and improving operational resilience. The report finds that the drivers of technology investment are changing.
AI is becoming an increasingly important factor in spending decisions. While reducing IT costs, increasing revenue and meeting regulatory requirements is becoming a key business priority.
According to Celant, IT spending is growing at a rapid pace globally and insurance companies in the Asia Pacific region are expected to see particularly strong growth in 2026.
However, the report also highlights the challenges faced by the sector. “Persistently high inflation and macroeconomic pressures are expected to impact insurance companies and influence future investment decisions,” the report said. —Agency
