Beazley examines the insurance needs of digital health businesses

A new report by Beazley Plc dives deep into a world full of opportunities for digital health businesses, many of which remain underinsured.

The Focusing on digital health and wellness for 2022 report was based on a survey conducted by Beazley of 300 business leaders in health and digital health from the UK, US, Canada, and Asia (Singapore and Hong Kong). The study included health and wellness professionals; software and platform providers; health and life science technology companies; and mHealth (mobile health), telehealth, and telemedicine providers.

Of those surveyed worldwide, it was found that 76% do not have at least one insurance policy that matches the risks they face, although 99% of the companies surveyed intend to expand and 72% saw an increase in demand. Business leaders agree that cyber and cyber security are the biggest threats.

Here are some of the findings:

  • 24% have at least one industry-related policy that covers them almost or completely
  • 34% have several different insurance policies, some or all of which are provided by companies
  • 33% have at least one plan that covers everything or almost everything but it has not been developed
  • 9% have several different policies, none of which are relevant to their company
  • 62% have no knowledge of technical errors or omissions that lead to physical injuries
  • 69% are not covered for medical malpractice due to incorrect data that leads to physical harm
  • 37% are covered for bodily injury due to remote care

“In our experience, the leading cause of loss continues to be allegations of medical negligence or medical malpractice,” said Beazley’s Keri Marmorek, director of the medical and life sciences research group. “Most of the time these are cultural claims, but now a growing number of them come from the clinical use of patients.”

Meanwhile, below are the key threats to digital health businesses around the world.

Terrible

UK

US

Canada

Asia

Fulfilling regulatory requirements

24%

8%

13%

27%

Regulatory or historical restrictions that prevent growth

16%

19%

20%

17%

Financial uncertainty

17%

17%

13%

21%

Instability of supply and production

17%

20%

20%

9%

Experience with financial performance

17%

12%

17%

16%

Ability to record, store, and search professional information

16%

15%

16%

16%

Billing errors in the contracting business

16%

13%

17%

13%

Rising prices

13%

13%

19%

11%

Failure to make money

12%

17%

9%

13%

Fighting the growth of disease

12%

15%

9%

11%

Staying up-to-date with regulatory requirements

13%

11%

12%

9%

Competition

5%

12%

7%

13%

Evan Smith, Beazley’s global head of medical and life sciences, said: “As opportunities increase and financial pressures force rapid innovation to achieve profitability, health and wellness insurance needs will become even more critical.

“Investing in cyber security and risk management and risk management are all ways that healthcare businesses will continue to grow in 2022. Such developments, although important to the future of the health and wellness industry, will increase the pressure on insurance companies to adapt and adapt to new issues.”

For Jennifer Schoenthal, global head of global care, insurance companies must continue to connect with the concerns of business leaders and work closely with customers as their businesses grow and digital health models advance.