A global survey conducted by Beazley has revealed that 99% of digital health firms anticipate growth, but almost 80% do not have an insurance policy tailored to the specific risks they face, despite claims spiking by 50% in the past year.
The survey was drawn from 300 business leaders in the digital health and wellness sector in the US, Canada, the UK, Singapore and Hong Kong, and was conducted between March and April 2022.
Jennifer Schoenthal, Product Leader – Global Virtual Care, Beazley, commented, “COVID-19 has transformed the global appetite for digital health and wellness services. This, along with associated shifts in public health policy in almost every country, has made it easier for people to access health services online.”
“Against this backdrop, every aspect of digital health and wellness services, including telehealth, telemedicine, mHealth, HealthTech software platforms and life sciences technology, have grown fuelled by a solid track record of innovation, a wave of fresh capital, international expansion plans and patient/customer demand.
“We as an industry need to continue to stay connected to industry leaders’ concerns and work closely with our clients as their businesses grow and digital health models move forward. We can also look for areas to drive better collaboration to deliver more insightful, responsive, tailored insurance coverage to meet fast-changing customer needs.”
52% of respondents globally reported that the pandemic had increased claims, a trend particularly strong in Asia, affirmed Beazley.
The company’s own claims experience is in line with these findings, with its US team seeing a significant increase in the number of telemedicine claims since 2017, although, in line with the increase in policies underwritten, it says.
Evan Smith, Global Head of Miscellaneous Medical and Life Sciences, Beazley, added, “The claims experience of different sectors seems to reflect both the relative maturity of these industries but also the radically different nature of their operations during the pandemic.”
One of the standout findings, says Beazley, is that 76% of the companies surveyed do not buy a single tailored policy, increasing the risk of coverage gaps and shortfalls.
Keri Marmorek, Claims Focus Group Leader, Miscellaneous Medical & Life Sciences, Beazley, said, “The new and unique combination of risks within digital health and wellness services create a complex web of interconnected exposures that can be hard to get to grips with for business leaders, and also for brokers and insurers that are often new to the digital health landscape.”
“Failure to join the dots between these key risks means that under-insurance and gaps in coverage pose an issue for insureds.”
