The attitude of digital health and wellness providers towards risk and insurance is changing rapidly across all geographies, according to specialist insurer Beazley.
The second edition of Beazley’s report, ‘Spotlight on digital health and wellness 2022’, 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 report found that 76% of respondents do not have a single insurance policy tailored to the risks they face. The respondents said cyber and regulatory risk dominate, cited by 27% and 47% of leaders across all markets.
The research also found that many companies lack the coverage they need for everyday risks that could lead to significant claims, and in particular for bodily injury claims arising from digital healthcare.
The report surveyed 376 business leaders in the digital health and wellness sector in the US, Canada, the UK, Spain, Singapore and Hong Kong.
The survey found that globally, just over 72% of health and wellness businesses surveyed reported increased demand for tech-related services, which is a substantial increase from 2020, when only 58% saw increased demand.
Also, only 62% of leaders believe they operate in a moderate to high-risk environment compared to 89% last year. The survey revealed that opportunities and challenges abound for this rapidly growing industry and 99% are planning expansion.
Over half (52%) of respondents globally reported that the pandemic had increased claims. This trend was particularly strong in Asia. Beazley’s US team has seen a significant increase in the number of telemedicine claims since 2017, although in line with the increase in policies underwritten as the sector has boomed. M