Insurers must do more to support digital health and wellness: Beazley

Insurance companies and brokers must do more to support the growth of the digital health and wellness sector, according to a report commissioned by Beazley.

The report, titled Spotlight on digital health and wellness, called for more specialist coverage that meets the specific risk requirements of this sector, and helps companies to navigate the complex risk landscape.

Despite broad optimism about the future and an influx of capital into the sector, many businesses are unnecessarily exposed to financial and reputational damage through underinsurance, the report found. While 85 percent of respondents said they are confident they know what insurance coverage they need, 70 percent said they are only covered for one or two of these key risks. For example, more than two thirds admitted they lack insurance coverage for bodily injury claims arising from system failure or cyber breach.

The report exposed a lack of specialist insurance that can protect businesses against the risks facing this sector, with 36 percent of respondents saying they have struggled to find insurance that is right for their business. The report highlighted gaps for the risk to physical health that can be caused by lost or false data, system failure or cyber breach leading to misdiagnosis, inappropriate or failed treatments.

The report is based on a survey commissioned by Beazley of more than 350 executives from established telehealth and telemedicine companies to those at the forefront of newer sub-sectors including mobile-health, health software platforms and life science technology.

The report found that while 89 percent of respondents perceive the sector to be relatively high risk, nine out of 10 businesses expect it to grow this year.

Jennifer Schoenthal, global virtual care product leader at Beazley, said: “Digital health and wellness leaders have said they want our industry to improve how we communicate, share knowledge and collaborate, to deliver more appropriate coverage, more effectively. There is a huge opportunity for brokers and insurers to heed these messages. In particular, we need to work together to build holistic insurance solutions that focus more closely on the integrated risks these clients face to help them avoid risky gaps in their coverage.”

Evan Smith, global head of miscellaneous medical and life sciences at Beazley, said: “Since we wrote our first telehealth risk in 2009, the digital health sector has continued to evolve in line with technological advancements and changing attitudes towards remote care among patients as well as health practitioners, governments and investors. However, the sector has grown exponentially from the beginning of the pandemic, fuelled by an impressive track record in innovation, a wave of fresh capital, expansion plans and demand.

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