London, Sept. 23, 2022 (GLOBE NEWSWIRE) — Beazley today released the second edition of its Spotlight on Digital Health and Wellness 2022 report, which examines the changing attitudes toward risk and insurance among digital health and wellness leaders in North America. Asia, UK and Europe.
Opportunities and challenges for this fast-growing industry abound:
- 72% of surveyed firms say demand is growing and 99% plan to expand
- Only 62% of leaders think they work in medium and high-risk environments, compared to 89% last year.
- Cyber and regulatory risk dominate as cited by 27% and 47% of global leaders
- 76% do not have an insurance policy suitable for the risks they face
Growth is fast and accelerating
Globally, just over 72% of health and wellness organizations we surveyed report increased demand for technology services, a significant increase from 2020, when only 58% increased demand.
Jennifer Schoenthal, Product Lead – Global Virtual Care, Beazley commented: “Covid-19 has transformed the global appetite for digital health and wellness services. This, along with corresponding changes in public health policy in almost every country, has made it easier for people to access online health services. Against this background, all aspects of digital health and healthcare services, including telehealth, telemedicine, mHealth, HealthTech software platforms and life sciences technology, have a strong track record of innovation, a fresh wave of capital, international expansion plans and patient/customer demand.
“As an industry, we must continue to engage with the concerns of industry leaders and work closely with our customers as their businesses grow and digital health models advance. We can also look for areas to better collaborate to deliver deeper and more responsive, tailored insurance coverage to meet customers’ rapidly changing needs.”
The pandemic has increased the claims
Globally, more than half of respondents (52%) said the pandemic has increased their claims. This trend was particularly strong in Asia.
Beazley’s own litigation experience is consistent with these findings. The US team has seen a significant increase in the number of telemedicine claims since 2017, albeit in line with the increase in policies being written as the sector evolves.
Evan Smith, Global Head of Diversified Medical and Life Sciences, Beazley, said: “The claims experience of different sectors reflects both the relative maturity of these industries and the radically different nature of their operations during a pandemic.”
Very few companies buy custom covers
One notable finding is that 76% of companies surveyed do not purchase a single tailored policy, increasing the risk of coverage gaps and lapses.
Keri Marmorek, Claims Focus Group Leader, Diversified Medical and Life Sciences, Beazley commented: “The new and unique combination of risks within digital health and healthcare services creates a complex web of interconnected exposures that can be difficult for business leaders to understand. , as well as for brokers and insurers who are often new to the digital health landscape. “Not connecting the dots between these key risks means that underinsurance and gaps in coverage are a problem for policyholders.”
Risks of bodily injury are not recorded
Another finding of the study is that many companies do not have the required coverage for everyday risks that can lead to significant claims, and especially for bodily injuries arising from digital healthcare. For example, globally:
- 62% have no coverage for technological errors or omissions that cause bodily injury
- 69% are not covered for medical malpractice due to incorrect information that causes bodily injury
- Only 37% have personal injury insurance for remote viewing
For more information, contact:
The Beazley Group
M +44 (0)7787 545529
Research background: growing global market
The global digital health and wellness market crossed USD 289 billion in 2021 and will reach USD 881 billion by 2027. This translates to an impressive compound growth rate of 20% over the period 2022-2027..
This report is based on a survey of 300 business leaders in the digital health and wellness sector located in the US, Canada, UK, Singapore and Hong Kong (Asia). The survey was conducted by Opinion Matters on behalf of Beazley in March and April 2022.
Industry sub-sectors were health and wellness practitioners; software and platform providers; there was an even split of respondents between health-tech and life-sciences technology companies, mHealth, telehealth and telemedicine providers, and company sizes between $250,000 and over $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 paid $4,618.9 million in total insurance premiums worldwide.
Beazley manages seven Lloyd’s syndicates, all Lloyd’s syndicates are rated A by AM Best.
Beazley’s US underwriters focus on writing a range of specialist insurance products. Beazley Insurance Company, Inc. is an AM Best A-rated carrier licensed in all 50 states with coverage in the accepted market. provided by Coverage in the excess lines market is provided by Beazley syndicates at Lloyd’s.
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 select areas covering professional indemnity, cyber liability, property, marine, reinsurance, accident and life, political risks and contingency business.
For more information, visit www.beazley.com
 The 2022 report is based on a survey by Beazley of more than 300 digital health and wellness professionals in the US, UK, Canada, Singapore and Hong Kong (Asia).
COVID-19 and its economic impact are changing the demand for services
Asia most affected by the pandemic