Medical Device & Healthtech – Implications for Insurance

The medical sector has not been left behind when it comes to advances in technology and this potential has certainly been recognised by both investors and politicians alike.

Last year alone health technology start-ups were boosted by more than £200 million in venture capital and initiatives such as Medcity (a joint programme between Imperial College London, King’s College London and the universities of Oxford & Cambridge) which is tasked to build on life science research, entrepreneurship and investment in the southeast.

In terms of insurance the nature of risk is changing as in the past a medical device was more likely to be a tangible product that could cause harm or damage in a tangible way. From an insurance point of view if the underwriter has done their sums correctly, such eventualities are predictable (to a point) and containable.

The “internet of things” now means that it is possible that a medical device can transmit medical data to a doctor or consultant from anywhere in the World as long as there is an internet connection. Also, some care companies are already using artificial intelligence to provide tailored care for patients in their homes.

From what was mainly a public/products liability driven risk, underwriters and brokers are now having to consider elements of professional indemnity (what happens if the software is wrong) to cyber risks surrounding hacking issues and privacy of data.

Whether it be Medical Device, Healthtech or Medtech, these companies are likely to require a specialist solution for their insurances.

Further advice is available from Tony Gibbs, based in our Reading office on 0118 9165485, email at info@macbeths.co.uk or via our contact form.

Author: Tony Gibbs | May 14th, 2018

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Tony Gibbs
Get in touch:   Reading: 0118 916 5480   London: 020 7036 8767   info@macbeths.co.uk