Beazley probes insurance needs of digital health businesses
A new report by Beazley Plc has taken a deep dive into the opportunity-rich world of digital health businesses, a majority of which, it turns out, are not adequately insured.
The Spotlight on digital health and wellness 2022 report was based on a Beazley-commissioned survey of 300 digital health and wellness industry business leaders from the UK, the US, Canada, and Asia (Singapore and Hong Kong). The poll spanned health and wellness practitioners; software and platform providers; health-technology and life sciences technology companies; and mHealth (mobile health), telehealth, and telemedicine providers.
Of the global respondents, it was found that 76% do not have a single insurance policy tailored to the risks they face, even while 99% of the firms surveyed plan to expand and 72% noted growth in demand. Business leaders acknowledged cyber and regulatory as the top risks.
Here are some of the findings:
- 24% have a single industry-tailored policy that covers them for nearly or everything
- 34% have a number of separate insurance policies, some or all of which are industry-tailored
- 33% have a single policy that covers for everything or almost everything but is not tailored
- 9% have a number of separate policies, none of which are tailored to their industry
- 62% do not have coverage for technology errors or omissions leading to bodily injury
- 69% are not covered for medical malpractice due to incorrect data leading to bodily injury
- 37% are covered for bodily injury due to remote care
“In our experience, the largest cause of loss continues to be allegations of medical negligence or medical malpractice,” said Beazley’s Keri Marmorek, claims focus group leader for miscellaneous medical & life sciences. “Mostly these are traditional-type claims, but now a growing number stem from patient use of a medical platform or app.”
Meanwhile, below are the top risks for digital health and wellness businesses globally.
|
Risks |
UK |
US |
Canada |
Asia |
|---|---|---|---|---|
|
Meeting 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% |
|
Meeting a minimum financial performance |
17% |
12% |
17% |
16% |
|
Ability to recruit, retain, and check credentials of… |
Read More: Beazley probes insurance needs of digital health businesses