The global pandemic has forced governments around the world to balance looking after the economy with maintaining public health. It has driven significant change in society that is likely to outlast this health crisis, and nowhere more than in healthcare.

Amid heightened health risk and social distancing, consumers have become far more receptive to digital health and wellness offerings, while public policy is changing to accommodate new modes of healthcare delivery.

Against this backdrop, every aspect of digital health and wellness services, including telehealth, telemedicine, mHealth, health software platforms and technology and life science technology, has grown exponentially – fueled by a solid track record of innovation, a wave of fresh capital, international expansion plans and demand.

The potential for the digital health and wellness sector at this time is considerable, yet so are the risks it faces. Among businesses in this sector:

  • Over two thirds lack insurance coverage for medical malpractice due to remote care provision, data breach, or cyber hack resulting in bodily injury.
  • 70% have only one or two of the key insurance coverages they need.
  • On average one third struggle to get the right coverage, to understand the risks they face or to understand their insurance policies.

These findings, taken from a global survey of 376 digital health and wellness practitioners, demonstrate there are barriers to the sector’s growth and suggest the trajectory for the industry may not be as rapid as stakeholders, including business leaders, consumers, governments and investors, require.

But while health and wellness providers recognize they need better leadership if they are to shape their future more effectively, our findings also demonstrate that the insurance industry has a significant job to do.

Five key takeaways for the insurance industry:

  1. There is high optimism with nine in 10 businesses expecting to grow this year
  2. There is also a perception among 89% that the level of risk they face is relatively high
  3. Over two thirds lack insurance coverage against bodily injury claims as a result of a cyber hack
  4. More support is needed – a third want more education on the risks they need covered
  5. Simpler is better - 30% of digital health leaders demand clearer policy language from insurers
Specifically, our industry needs to improve communication, knowledge transfer and collaboration in order to deliver more appropriate cover, more effectively, to meet fast-changing customer needs. As insurers handle more claims and get more familiar with what can really go wrong for this sector, this experience needs to be used to better inform and support our clients on risk management and risk mitigation needs.

The scale of the opportunity for digital health businesses and the insurance industry is unprecedented, and the time to act is now.

Beazley partners with the digital health and wellness industry around the world. By providing the risk mitigation and risk transfer needed to strengthen businesses and facilitate capital raising, we can help the digital health industry to mature and deliver solutions that will play a key role in enabling future economic growth.

Jennifer Schoenthal
Global Product Leader, Virtual Care

Digital health & wellness

  • 89% of businesses operate in a moderate to high risk environment
  • 85% say they are confident they know what insurance coverage they need
  • But 70% have coverage for just one or two key risks
  • Top 2 risks overall:
    - Client complaints due to misrepresentation
    - Cyber attack or system failure.
  • 90% of businesses plan growth in 2021
  • 33% are innovating new services and products
  • 62% are raising capital
  • 58% are experiencing growth due to COVID-19.
  • 33% of leaders don’t know what types of risk they need coverage for
  • 30% struggle to read and understand insurance policies
  • 36% find it hard to find coverage that is right for their specialist business
  • 24% want to establish more robust risk management and insurance frameworks.
  • Lack of coverage for existential risks is striking
  • 68% of businesses have no coverage for loss of personal medical data
  • 68% have no coverage for system failure or hack resulting in bodily injury
  • 67% have no coverage for medical malpractice due to remote care, provision.