LONDON, September 23, 2022 (GLOBE NEWSWIRE) – Today Beasley published the second edition of its report, Spotlight on Digital Health and Wellness 2022which examines changing attitudes toward risk and insurance among digital health and wellness leaders in North America, Asia, the United Kingdom, and Europe.
Opportunities and challenges abound for this fast-growing industry:
- 72% of surveyed companies report demand growth and 99% plan to expand
- Only 62% of leaders believe they work in a medium to high risk environment compared to 89% last year
- Cyber and regulatory risks dominate 27% and 47% of global leaders
- 76% do not have a single insurance policy dedicated to the risks they face
Growth is fast and accelerating
Globally, just over 72% of the health and wellness companies we surveyed reported increased demand for technology-related services, a significant increase from 2020, when only 58% saw an increase in demand.
Jennifer Schwenthal, Product Lead – Global Virtual Care, Paisley commented: “COVID-19 has transformed the global appetite for digital health and wellness services. This, along with accompanying shifts in public health policy in nearly every country, has made it easier for people to access health services online. Against this background, every aspect of digital health and wellness services, including telehealth, telemedicine, mobile health, HealthTech software platforms, and life science technology, has grown, backed by a proven track record of innovation, a wave of new capital, international expansion plans, and patient/ customer request.
“We as an industry need to continue to stay in touch with the concerns of industry leaders and work closely with our customers as their businesses grow and move forward with digital health models. We can also look at areas for better collaboration to offer insurance coverage that is more insightful, responsive and tailored to meet rapidly changing customer needs.”
The epidemic has increased claims
More than half (52%) of respondents globally report that the pandemic has increased claims. This trend was particularly strong in Asia.
Paisley’s claims experience is consistent with these findings. The US team has seen a significant increase in the number of telemedicine claims since 2017, although it is in line with the increase in insurance policies as the sector booms.
“The claims experience for different sectors appears to reflect the relative maturity of these industries as well as the radically different nature of their operations during the pandemic,” said Evan Smith, Global Head of Diversified Medical and Life Sciences, Beasley.
Few companies buy custom cover
One notable finding is that 76% of surveyed companies do not purchase a single tailored policy, increasing the risk of coverage gaps and inefficiencies.
Keri Marmorek, Chair of the Claims Focus Group, Diversified Medical and Life Sciences, Beasley commented: “The new and unique mix of risks in digital health and wellness services creates a complex web of interconnected exposures that is difficult to deal with for business leaders, as well as for brokers and insurers who are often Newcomers to the digital health landscape. Failure to connect the dots between these key risks means that under-insurance and gaps in coverage pose a problem for insured.”
Not recording the risk of bodily injury
Another finding from the research is that many companies lack the coverage they need to meet the daily risks that can lead to large claims, in particular bodily injury claims arising from digital healthcare. For example, globally:
- 62% do not have coverage for technology errors or omissions that result in bodily injury
- 69% are not covered by medical malpractice due to incorrect data that leads to bodily injury
- Only 37% have coverage for bodily injury due to remote care
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Research background: a growing global market
The global digital health and wellness market exceeded US$289 billion in 2021 and is set to reach US$881 billion by 2027. This translates to a staggering 20% compound annual growth rate (CAGR) over 2022-2027.
This report is based on a survey of 300 business leaders in the digital health and wellness sector in the United States, Canada, United Kingdom, Singapore and Hong Kong (Asia). The research was conducted during March and April 2022 by Opinion Matters on behalf of Paisley.
Industry sub-sectors were health and wellness practitioners; software and platform providers; Health and life sciences technology companies, mobile health, telehealth and telemedicine providers, and there was an even split of respondents across company sizes ranging from $250,000 to over $1 billion
Note to editors:
Beasley plc (BEZ.L) is the parent company of specialty insurance companies operating in Europe, North America, Latin America and Asia. In 2021, Paisley underwent worldwide gross premiums of $4,618.9 million.
Paisley manages seven Lloyd unions, and all of Lloyd’s unions are rated A by A.M. Best.
Paisley insurers in the United States focus on writing a range of specialized insurance products. In the recognized market, coverage is provided by Beazley Insurance Company, Inc. , an AM Best A rated carrier and licensed in all 50 states. In the surplus line market, coverage is provided by the Paisley Unions of Lloyds.
Beazley’s European insurer, Beazley Insurance dac, is regulated by the Central Bank of Ireland and is rated by AM Best and A+ by Fitch.
Paisley is a market leader in many of its select lines, which include professional indemnity, electronic liability, property, marine, reinsurance, accident and life, political risk and emergency business.
For more information please go to: www.beazley.com
 The 2022 report is based on a survey conducted by Paisley of more than 300 digital health and wellness practitioners in the United States, United Kingdom, Canada, Singapore and Hong Kong (Asia).