The digital healthcare industry has become a thriving, opportunity-rich sector, whilst facing escalating cyber threats and evolving regulatory challenges according to CFC, the specialist insurance provider, pioneer in emerging risk and market leader in cyber.
Published today, its latest Digital Healthcare Report explores the key trends shaping this industry, providing valuable insight and real claims experience to help brokers ensure their clients in this sector stay ahead of the curve.
Key findings reveal:
- AI liability is shifting from bodily injury to data privacy and regulatory challenges
- Bodily injury accounts for 1 in 3 claims
- Cyber and privacy is a key concern, driving 25% of all eHealth claims
- Medical weight-loss claims are rising, impacting over 8 key insuring clauses
“The digital healthcare industry is undergoing a fundamental shift, driven by advancements in technology, patient expectations and increased regulatory oversight.” Ellie Saunders, Healthcare Team Lead at CFC
She continues: “As it navigates increasing complexities in teleprescribing and data security, having the right insurance protection is only going to gain in importance amongst businesses and healthcare providers operating in this sector. There is a significant opportunity here for brokers to become a vital partner.”
CFC has experienced considerable growth in its portfolio globally over the past two years. In the US, new enquiries have surged by 40% and increased by 92% in Australia. Some of the largest growth has been seen in emerging regions like Ireland and Denmark who are gaining significant momentum. In particular, CFC has seen a 67% increase in AI start-up businesses purchasing cover over the past two years as AI-driven tools are increasingly used across administrative functions. At the same time, investment in AI-powered solutions continues to rise making it a driving force in reshaping the industry.
The rise of weight-loss medication has also surged in the last 18-months. Emerging healthcare models where digital prescribing practices have increased the risk of improper prescriptions and this is reflected in CFC’s claims experience. Weight-loss medications have triggered claims across eight distinct policy sections under CFC’s eHealth product – many of which fall outside the coverage of a traditional medical malpractice policy.
The digital healthcare sector has become a goldmine for cybercriminals because of the value and sensitivity of patient data or protected health information. Cybercrime accounts for one third of CFC’s cyber claims and breaking this down further, the report reveals:
- 25% of eHealth claims stem from cyber losses
- 38% of the total cost of eHealth claims is due to cyber
- 70% of eHealth cyber claims payments are due to ransomware
The growing adoption of digital healthcare solutions has resulted in CFC experiencing a significant rise in claims notifications. Two thirds of claims now stem from emerging sources such as advertising liability, IP or cybercrime which would not be covered under a traditional medical malpractice policy.
“While bodily injury, cyber and privacy remain key exposures, the sources of these claims continue to evolve,” says Saunders. “It’s our job not only to react to challenges as this market develops but, more importantly, stay ahead of them. We remain committed to evolving our coverage to reflect the risks of digital healthcare businesses and healthcare providers, ensuring they have the confidence to continue to innovate safe in the knowledge they’re supported.”
CFC has been a pioneer in the provision of insurance solutions in the digital healthcare industry since launching its eHealth product in 2017, bridging the gap between bodily injury, technology and cyber exposures.
Read more about CFC’s market-leading eHealth policy here. Download CFC’s Digital Healthcare Report 2025 for free here.
