The report surveyed 600 executives from digital health and wellness companies across Europe, North America, and Asia. As businesses accelerate their use of AI, issues around trustworthiness and bias are becoming more prominent.
The report underscores the need for both businesses and insurers to ensure adequate protection. However, Beazley found that only 30% of UK companies purchase tailored insurance that covers bodily injury resulting from technology-driven services. This trend is reflected globally, suggesting a widespread gap in essential insurance coverage for digital health businesses.
Supply chain and recruitment challenges are also seen as significant barriers to growth for UK digital health and wellness companies. According to the report, 31% and 23% of UK businesses identified these issues as major obstacles, compared to 29% and 28% globally.
These figures mark a notable rise from 2022 when only 17% and 16% of global respondents viewed these issues as key concerns. Furthermore, less than half of firms worldwide (43%) expect business growth in 2024, though regional variations exist.
Two major risks remain at the forefront of executive concerns for 2024: cyber threats and competency. While both risks were also flagged in Beazley’s 2022 report, competency has now become the primary issue for UK executives.
Approximately 33% of UK executives expressed concern that clients may challenge the competency of treatment or advice, fearing it could be misrepresented. In addition, 41% of UK executives are worried about cyber threats, such as ransomware and phishing, a rise compared to 35% globally.
Evan Smith (pictured above), product leader of global healthcare, specialty risks at Beazley, noted that business leaders are correct to focus on the growing challenges presented by AI. He pointed out that while AI offers significant advantages, it also brings risks.
“Because AI seems like a ‘black box’ it can be hard to understand how it arrives at its conclusions, making it difficult to identify and correct bias, and to fully trust in AI’s recommendations. With our research finding that many businesses don’t have essential tailored insurance, it’s important insureds are considering the options available to them and ensuring the right cover is in place,” Smith said.
Keri Marmorek, claims team leader for healthcare at Beazley, echoed this sentiment. She stated that transformative technologies like AI come with both risks and rewards, citing that 87% of US digital health companies plan to expand their use of AI in patient care.
“It’s therefore essential that businesses partner with specialist insurers who have a deep bench of cyber and healthcare experts and a comprehensive, forward looking view of the risks,” Marmorek said.
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