All eyes on claims as liability shifts

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All eyes on claims as liability shifts

In brief

Privacy litigation, cyber incidents and AI-related disputes are creating more complex and interconnected claims.
Fast, reliable claims handling has become a key factor in digital health insurance purchasing decisions.
Organisations are increasingly seeking integrated risk transfer and insurance solutions that address multiple liabilities.

The surge in privacy litigation, cyber incidents, and regulatory scrutiny is forcing digital health leaders to shift their focus from growth to governance.

Rising losses from ransomware, wiretapping claims, and regulatory interventions mean executives are spending more time on compliance, contractor and vendor oversight strategies than ever before.

In a leadership climate defined by caution and cross-functional risk awareness, where a single privacy or cyber slip can wipe out brand and financial value, scrutiny of insurance partners is rising fast, and the quality of claims handling now carries far greater weight.

The claims net is widening

A rising cadence of higher value losses underpins the new focus on claims. Looking across our claims book, we see a variety of drivers including:

Growth in privacy and IP-related litigation
Increased disputes driven by marketing and business practices
Rising complexity in third-party and contractual disputes
Expansion of claims linked to AI-related errors, including particularly information transfer and miscommunication
More mental health and medication claims
Misinformation and consumer trust

Complex claims, shared liability
The liability ecosystem
The misinformation multiplier
Plaintiff lawyers are increasingly active
The AI-linked liability chain
Avoiding litigation
Strategies for success

The liability ecosystem

Loss concerns vs claims reality

How do the perceived risks compare with the claims that drive loss frequency and severity?

High loss concerns and high claims activity

Concerns about professional conduct, quality of care and treatment outcomes align with the claims that are generating the highest loss activity.

36% of digital health and wellness executives worry about unfair representation – treatment, advice, qualifications and competence. We see medical negligence as the most frequent and severe cause of loss.

24% of executives are concerned about inadequate care resulting from human error. We see improper supervision as the 2nd most frequent and severe cause of loss.

Emerging concerns

Privacy remains a key claims driver, while cyber concerns are expanding beyond data breaches to include patient harm and operational disruption.

32% of executives are concerned about cyber incidents, ransomware, data breaches and system failures. We see data privacy claims as the 3rd most frequent cause of loss, but the severity is lower than the frequency.

Potential blind spots

Supervision failures and contractual disputes generate significant losses – as seen above – but they receive much less attention from executives, highlighting potential blind spots around misrepresentation, credential verification and cross-border activity.

"The risks keeping healthcare leaders awake at night are increasingly digital, yet the claims being paid today are largely driven by medical negligence and supervision failures. Looking ahead, losses are unlikely to be defined by technology alone, but by the intersection of innovation, clinical judgement and effective oversight."
Keri Marmorek, Claims Team Leader, Healthcare Claims

Strategies for success

Brokers/clients	Insurers and brokers
Guardrails and controls ensure data hygiene standards and guardrails are enforced – with particular focus on data sourcing and governance.	Work to add affirmative language within the definition of tech products, professional liability (PL), cyber and media liability products.
Support a culture that fosters unity of purpose and a sense of collective responsibility between platform, providers and professionals to improve risk management.	Prepare AI guidelines and a supplemental questionnaire to better assess and underwrite AI risks, particularly for health tech companies.
Carefully select counsel who understand both technology and medicine, local nuances as well as the corporate structure of virtual care companies. Recognise you may need to flex the team.	Encourage tripartite collaboration between insurer, broker and client to share information, maintain learning and fuel adaptation.
Hold a pre-bind meeting with claims teams to understand who will handle cases and ensure alignment on expectations and strategy.	Become a strategic risk partner by providing risk intelligence and educating teams on preventing the operational and cyber issues that drive today’s claims.

Complex claims, shared liability