Global survey reveals 99% of digital health firms anticipate growth, but almost 80% do not have an insurance policy tailored to the specific risks they face, despite claims spiking by 50% in the past year.
COVID-19 and its economic impact change demand for services
Asia most impacted by the pandemic
London, Sept. 23, 2022 (GLOBE NEWSWIRE) — Beazley has today published the second edition of its report, Spotlight on digital health and wellness 2022, which examines changing attitudes to risk and insurance among digital health and wellness leaders in North America, Asia, the UK and Europe.[1]
Key findings
Opportunities and challenges abound for this rapidly growing industry:
- 72% of the firms surveyed report growth in demand and 99% are planning expansion
- Only 62% of leaders believe they operate in a moderate to high-risk environment compared to 89% last year
- Cyber and regulatory risk dominate, cited by 27% and 47% of leaders globally
- 76% do not have a single insurance policy tailored to the risks they face
Growth is rapid and accelerating
Globally, just over 72% of health and wellness businesses we surveyed report increased demand for tech-related services, which is a substantial increase from 2020, when only 58% saw increased demand.
Jennifer Schoenthal, Product Leader – Global Virtual Care, Beazley commented: “COVID-19 has transformed the global appetite for digital health and wellness services. This, along with associated shifts in public health policy in almost every country, have made it easier for people to access health services online. Against this backdrop, every aspect of digital health and wellness services, including telehealth, telemedicine, mHealth, HealthTech software platforms and life sciences technology, have grown fuelled by a solid track record of innovation, a wave of fresh capital, international expansion plans and patient/customer demand.
“We as an industry need to continue to stay connected to industry leaders’ concerns and work closely with our clients as their businesses grow and digital health models move forward. We also can look for areas to drive better collaboration to deliver more insightful and responsive, tailored insurance coverage to meet fast-changing customer needs.”
Pandemic has increased claims
Over half (52%) of respondents globally reported that the pandemic had increased claims. This trend was particularly strong in Asia.
Beazley’s own claims experience is in line with these findings. The US team has seen a significant increase in the number of telemedicine claims since 2017, although in line with the increase in policies underwritten as the sector has boomed.
Evan Smith, Global Head of Miscellaneous Medical and Life Sciences, Beazley said: “The claims experience of different sectors seems to reflect both the relative maturity of these industries but also the radically different nature of their operations during the pandemic.”
Few companies buy bespoke cover
One of the standout findings is that 76% of the companies surveyed do not buy a single tailored policy, increasing the risk of coverage gaps and shortfalls.
Keri Marmorek, Claims Focus Group Leader, Miscellaneous Medical & Life Sciences, Beazley commented: “The new and unique combination of risks within digital health and wellness services create a complex web of interconnected exposures that can be hard to get to grips with for business leaders, and also for brokers and insurers that are often new to the digital health landscape. Failure to join the dots between these key risks means that under-insurance and gaps in coverage pose an issue for insureds.”
Bodily injury risks fail to register
A further finding from the research is that many companies lack the coverage they need for everyday risks that could lead to significant claims, and in particular for bodily injury claims arising from digital healthcare. For example, globally:
- 62% don’t 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
- Only 37% have coverage for bodily injury due to remote care
Ends
For further information, please contact:
Beazley Group
Samantha Whiteley
M +44 (0)7787 545529
samantha.whiteley@beazley.com
Research background: a growing global market
The global digital health and wellness market topped US$289 bn in 2021, and is set to reach US$881bn by 2027. This translates into an astonishing compound annual growth rate of 20% over the period 2022-2027[2].
About the research
This report is based on a survey of 300 business leaders in the digital health and wellness sector located in the US, Canada, the UK, Singapore and Hong Kong (Asia). The research was conducted during March and April 2022 by Opinion Matters on behalf of Beazley.
The industry subsectors were health and wellness practitioners; software and platform providers; health-technology and life sciences technology companies, mHealth, telehealth and telemedicine providers, and there was an equal split of respondents across company sizes ranging from US$250,000 and more than US$1 bn
Note to editors:
Beazley plc (BEZ.L), is the parent company of specialist insurance businesses with operations in Europe, North America, Latin America and Asia. In 2021, Beazley underwrote gross premiums worldwide of $4,618.9 million.
Beazley manages seven Lloyd’s syndicates, all Lloyd’s syndicates are rated A by A.M. Best.
Beazley’s underwriters in the United States focus on writing a range of specialist insurance products. In the admitted market, coverage is provided by Beazley Insurance Company, Inc., an A.M. Best A rated carrier licensed in all 50 states. In the surplus lines market, coverage is provided by the Beazley syndicates at Lloyd’s.
Beazley’s European insurance company, Beazley Insurance dac, is regulated by the Central Bank of Ireland and is A rated by A.M. Best and A+ by Fitch.
Beazley is a market leader in many of its chosen lines, which include professional indemnity, cyber liability, property, marine, reinsurance, accident and life, and political risks and contingency business.
For more information please go to: www.beazley.com
[1] The 2022 report is based on a survey commissioned by Beazley of more than 300 digital health and wellness practitioners in the US, UK, Canada, Singapore and Hong Kong (Asia).
[2] https://tinyurl.com/4ufwmzz3
Attachments
- COVID-19 and its economic impact change demand for services
- Asia most impacted by the pandemic
CONTACT: Mairi MacDonald Beazley Group +44 (0)20 7674 7164 Mairi.Macdonald@beazley.com Samantha Whiteley Beazley Group +44 (0)7787 545529 samantha.whiteley@beazley.com
