A new report from Beazley Plc has taken a deep dive into the opportunity-rich world of digital health companies, the majority of which, it turns out, are underinsured.
The Spotlight on Digital Health and Wellbeing 2022 The report was based on a survey commissioned by Beazley of 300 digital health and wellbeing business leaders from the UK, US, Canada and Asia (Singapore and Hong Kong) . The survey focused on health and wellness practitioners; software and platform providers; health technology and life science companies; and mobile health (mobile health), telehealth and telemedicine providers.
Among global respondents, it was found that 76% do not have a single insurance policy suited to the risks they face, even though 99% of companies surveyed plan to expand and 72% noted growth in request. Business leaders recognized cybersecurity and regulation as the top risks.
Here are some of the findings:
- 24% have a single industry-tailored policy that covers them for almost or everything
- 34% have a number of separate insurance policies, some or all of which are industry-specific
- 33% have a single policy that covers almost everything but is not suitable
- 9% have a number of distinct fonts, none of which are appropriate for their industry
- 62% have no coverage for technological errors or omissions resulting in bodily injury
- 69% are not covered for medical malpractice due to incorrect data resulting in bodily 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, head of claims think tank for various medical and life sciences. “These are mostly traditional-type claims, but now a growing number are coming from patient use of a medical platform or app.”
In the meantime, below are the top risks to digital health and wellbeing companies around the world.
|
Risks |
UK |
WE |
Canada |
Asia |
|---|---|---|---|---|
|
Meet regulatory requirements |
24% |
8% |
13% |
27% |
|
Regulatory or historical restrictions limiting growth |
16% |
19% |
20% |
17% |
|
Economic uncertainty |
17% |
17% |
13% |
21% |
|
Supply chain and manufacturing instability |
17% |
20% |
20% |
9% |
|
Achieve a minimum financial performance |
17% |
12% |
17% |
16% |
|
Ability to recruit, retain and check practitioner references |
16% |
15% |
16% |
16% |
|
Invoicing errors for contract companies |
16% |
13% |
17% |
13% |
|
Inflation |
13% |
13% |
19% |
11% |
|
Inability to secure investment |
12% |
17% |
9% |
13% |
|
Keeping up with the pace of growth |
12% |
15% |
9% |
11% |
|
Stay up to date with regulatory requirements |
13% |
11% |
12% |
9% |
|
Competition |
5% |
12% |
seven% |
13% |
Evan Smith, Global Head of Diverse Medical and Life Sciences at Beazley, said, “As opportunities abound and economic imperatives compel accelerated innovation to drive profitability, the insurance needs of the healthcare industry and well-being will inevitably become more complex.
“Investment in cyber defense as well as broader risk and crisis management are all strategies identified by digital health companies to support growth in 2022. Such developments, while essential for the future of the digital health and wellbeing industry, will put additional pressure on the insurance industry to adapt and evolve new covers.
For Jennifer Schoenthal, global leader in virtual care products, the insurance industry must stay connected to the concerns of business leaders and work closely with customers as their businesses grow and digital health models evolve.
