CFC has released its 2025 Digital Healthcare Report, outlining significant developments in the digital health landscape alongside increasing cyber exposures and regulatory scrutiny.
The report notes that the industry continues to expand rapidly, particularly across the United States, Europe, and Australia, but faces rising operational risks and legal complexities.
According to CFC, new inquiries in the US digital health market rose 40% between 2022 and 2024, supported by growing investments and technological advancement, as well as heightened demand for chronic disease management and personalised care.
Australia saw a 92% increase in new business activity during the same period. While the US and UK remain CFC’s largest markets, countries such as Ireland and Denmark are gaining traction, with growth rates exceeding 200% in some cases.
Artificial intelligence continues to play an expanding role in the digital healthcare ecosystem. CFC reports that AI is moving beyond diagnostics and is increasingly integrated into both patient-facing tools and administrative systems.
From supporting operational efficiency to alleviating clinician workload, AI is becoming embedded in core healthcare functions. While private equity investment in digital health declined in 2023, CFC observed sustained interest in AI-powered technologies, which remain a key driver of sector transformation.
“Digital healthcare presents huge growth opportunities by improving and expanding equitable access to care. However, it can be difficult to navigate evolving regulations,” CFC UK and international eHealth product manager Rebecca Pelling (pictured above) said.
In 2024, the digital healthcare sector experienced a significant surge in cybercrime, underscoring the critical need for robust cybersecurity measures and presenting new opportunities for insurance brokers.
The healthcare sector reported 677 major data breaches in 2024, affecting over 182 million individuals. Ransomware attacks on healthcare organisations increased by 278% from 2018 to 2023.
Meanwhile, the average cost of a healthcare data breach was US$10.93 million, nearly double that of the financial sector.
Several factors contribute to the attractiveness of the healthcare sector to cybercriminals. According to a report, electronic health records (EHRs) can sell for up to US$1,000 each on the dark web, compared to US$5 for stolen credit card numbers.
The essential nature of healthcare services also makes organisations more likely to pay ransoms to restore operations swiftly. The sector is also known for outdated systems and unpatched software which increase vulnerability to cyberattacks.
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