Majority of digital healthcare claims would not be covered under traditional policies
Source: Middle East Insurance Review | Dec 2022
Over two-thirds (70%) of claims from digital healthcare presently come from areas which would not be covered under traditional medical policies or traditional malpractice solutions, according to a new report by CFC Underwriting.
The first report on the digital healthcare market by the specialist insurance provider released in November 2022 examines CFC’s own claims and enquiry data over the last five years to assess the factors that have been driving growth, identify major trends and investigate the most common types of claims.
The report found that:
- Digital health and hybrid healthcare enquiries are set to overtake traditional healthcare enquiries, totalling 49% of total enquiries in 2021
- While the US still dominates the digital health space, demand and adoption for digital healthcare insurance is surging in the UK, Canada and Australia
- AI companies have seen a 32% increase in policy and enquiry count over the last year
- AI-related intellectual property claims are outpacing traditional healthcare incidents making up nearly a fifth of digital healthcare claims
- The frequency of cyber incidents has quadrupled in 2021
In addition to growth in demand in the UK, Canada and Australia, CFC is now seeing enquiries from a wide selection of countries including Israel, Ireland, The Netherlands, Denmark, Croatia and Singapore.
The biggest sector represented in CFC’s digital healthcare portfolio continues to be telemedicine, largely due to its reliance on well-established and widely accessible technology. While CFC is seeing increasing demand for cover from other digital health sectors, telemedicine continues to grow its share of CFC’s digital healthcare business, highlighting ongoing demand for such services.
Remote patient monitoring solutions now represent 12% of CFC’s overall digital healthcare portfolio. M