Beazley research highlights that digital health and wellbeing providers can operate without effective protection in place

Beazley research highlights that digital health and wellbeing providers can operate without effective protection in place

London, Sept. 23, 2022 (GLOBE NEWSWIRE) — Beazley today released the second edition of its report, Spotlight on Digital Health and Wellbeing 2022, which examines changing attitudes towards the risk and insurance at digital health and wellbeing leaders in North America, Asia, UK and Europe.[1]

Main findings
Opportunities and challenges abound for this rapidly growing industry:

  • 72% of companies surveyed report growth in demand and 99% expect expansion
  • Only 62% of leaders believe they operate in a moderate to high risk environment, down from 89% last year
  • Cyber ​​and regulatory risks dominate, cited by 27% and 47% of executives globally
  • 76% do not have a single insurance policy suited to the risks they face

Growth is rapid and accelerating
Globally, just over 72% of the health and wellness companies we surveyed report increased demand for technology-related services, which is a substantial increase from 2020. when only 58% saw increased demand.

Jennifer Schoenthal, Product Manager – Global Virtual Care, Beazley commented: “COVID-19 has transformed the global appetite for digital health and wellness services. This, and associated changes in public health policy in almost every country, have made it easier for people to access e-health services. In this context, all aspects of digital health and wellness services, including telehealth, telemedicine, mobile health, HealthTech software platforms and life science technology, have been developed through a strong track record of innovation, a wave of fresh capital, international expansion plans and patient/customer demand.

“As an industry, we need to stay connected to the concerns of industry leaders and work closely with our customers as their businesses grow and digital health models evolve. We can also look for areas in which to foster better collaboration in order to provide more insightful and responsive bespoke insurance coverage to meet rapidly changing customer needs.

The pandemic has increased claims
More than half (52%) of respondents globally said the pandemic had led to an increase in claims. This trend has been particularly strong in Asia.

Beazley’s claims experience is consistent with these findings. The US team saw a significant increase in the number of telemedicine claims since 2017, although in line with the increase in policies taken out as the sector boomed.

Evan Smith, Global Head of Miscellaneous Life and Medical Sciences, Beazley said: “The claims experience of different sectors appears to reflect both the relative maturity of these industries, but also the radically different nature of their operations during the pandemic.”

Few companies buy custom-made coverage
One of the most remarkable findings is that 76% of companies surveyed do not purchase a single bespoke policy, increasing the risk of gaps and undercoverage.

Keri Marmorek, Head of Claims Think Tank, Miscellaneous Medical and Life Sciences, Beazley, said: “The new and unique mix of risks within digital health and wellbeing services creates a complex web interconnected exposures that can be difficult for business leaders to master, but also for brokers and insurers who are often new to the digital health landscape.Failing to connect the dots between these key risks means that underinsurance and gaps in coverage are a problem for policyholders.

Bodily hazards are not recorded
Another finding from the research is that many companies lack the coverage they need for day-to-day risks that could lead to large claims, and in particular for personal injury claims arising from digital healthcare. For example, globally:

  • 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
  • Only 37% have coverage for bodily injury from remote care

Ends

For more information, please contact:

Beazley Group
Samantha Whiteley
+44 (0)7787 545529
samantha.whiteley@beazley.com

Research context: a growing global market
The global digital health and wellness market surpassed US$289 billion in 2021 and is expected to reach US$881 billion by 2027. This translates to an astonishing compound annual growth rate of 20% over the period 2022-2027.[2].

About Research
This report is based on a survey of 300 digital health and wellbeing business leaders located in the US, Canada, UK, Singapore and Hong Kong (Asia). The research was conducted in March and April 2022 by Opinion Matters on behalf of Beazley.

The industry subsectors were Health and Wellness Practitioners; software and platform providers; health and life science technology companies, mobile health, telehealth and telemedicine providers, and there was an even distribution of respondents across all company sizes ranging from $250,000 to more than $1 billion

Note to editors:
Beazley plc (BEZ.L) is the parent company of specialist insurance businesses operating in Europe, North America, Latin America and Asia. In 2021, Beazley wrote worldwide gross premiums of $4,618.9 million.

Beazley operates seven Lloyd’s syndicates, all Lloyd’s syndicates are rated A by AM Best.

Beazley’s underwriters in the United States focus on underwriting a range of specialty insurance products. In the admitted market, coverage is provided by Beazley Insurance Company, Inc., an AM Best A licensed carrier licensed in all 50 states. In the excess line market, cover is provided by Lloyd’s Beazley syndicates.

Beazley’s European insurance company, Beazley Insurance dac, is regulated by the Central Bank of Ireland and is rated A by AM Best and A+ by Fitch.

Beazley is a market leader in many of its chosen ranges, which include professional indemnity insurance, cyber liability, property, marine, reinsurance, accident and life, political risk and emergency activities .

For more information, visit: www.beazley.com


[1] The 2022 report is based on a survey commissioned by Beazley of over 300 digital health and wellbeing practitioners in the US, UK, Canada, Singapore and Hong Kong (Asia).

[2] https://tinyurl.com/4ufwmzz3

  • COVID-19 and its economic impact are changing the demand for services

  • Asia most affected by the pandemic

        

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