Proceed with caution: addressing today’s healthcare technology risks
Healthcare and life sciences executives are less confident this year, compared to last year, about anticipating and responding to technology risks. While on the surface this data might hint at heightened concerns, our data illustrates a mature understanding and management of the risks. It appears these executives lean towards a conservative outlook anchored in robust industry knowledge – and a strong understanding of exactly what is and is not within organisations’ control today.
Responses from healthcare and life sciences firm executives: Preparedness to respond to technology risks
A year-over-year decrease in healthcare industry executives’ perceived preparedness to anticipate and respond to technology risks shows a certain degree of prescience; they may be cautious and concerned about what the future brings right now–and rightly so."
Explore the reasons healthcare and life sciences organizations should be concerned about cyber risk.
Technology obsolescence by its very nature is cyclical. There were significant updates and associated capital spending during the COVID-19 pandemic; now just a few years later, organisations are finding that their hardware is once again obsolete.
This obsolescence is poorly timed, as the current macroeconomic environment has made borrowing heavily at low rates a less viable option than it used to be. With the ability to mitigate tech obsolescence largely driven by money and access to capital, the balance sheet becomes the deciding factor.
There is an ever-changing landscape of cyber criminals whose job it is to constantly identify IT vulnerabilities. As a result, even those organisations that are prepared for today’s event may not necessarily be ready for how a hacker may attack tomorrow.
Keeping pace with risks and patching vulnerabilities cannot be a one-and-done exercise; it must be an ongoing priority for organisations to protect themselves against cyberattacks. (For more on the dangers of complacency around cyber risk, click here)
Supply chain disruption continues to be an issue, but organisations are adapting to the lessons they have learned, and are making changes to their supply chains to help minimise disruption.
Organisations that are truly global in nature have the most resources (or access to resources) to weather a lot of these risks, as they are able to pick and choose the countries they work in. When policyholders are unable to deliver or experience delay in delivery of their services and products, we work directly with them to support and resolve the delays.
How we can help
We see our healthcare policyholders responding well to technology risks – and we work hard to give them the tools and information they need to do so effectively
Despite all the caution they bring to the table, healthcare executives remain hopeful for the future. (For more on the ways that technology is fueling this optimism, click here.) Our team is here to help them get there.
Acting as a steady, global partner to our healthcare and life sciences policyholders is a priority for us. As AI issues have developed, we have discussed them with our clients at a fair and logical pace. Similarly, when it came to Pixel litigation, we didn’t panic, but rather we sought to understand. Our experience has helped us to defend a number of these claims, and we provide our policyholders with detailed and thoughtful responses to their emerging exposures. When it comes to emerging risks, from pregnancy termination to gender affirmation to GLP1 class drug exposures, We do not automatically exclude – we underwrite and manage the claims. Insureds are now changing their practices in response to our guidance, mitigating exposure to future risks.
In the coming months, we’ll be examining a wide variety of cyber and tech-related topics that have direct operational relevance to the healthcare market. We will be looking at the risks that keep the industry up at night – and even a few that don’t (but should). Please read on to learn more.
The information set forth in this document is intended as general risk management information. It is made available with the understanding that Beazley does not render legal services or advice. Although reasonable care has been taken in preparing the information set forth in this document, Beazley accepts no responsibility for any errors it may contain or for any losses allegedly attributable to this information.
A year-over-year decrease in healthcare industry executives’ perceived preparedness to anticipate and respond to technology risks shows a certain degree of prescience; they may be cautious and concerned about what the future brings right now–and rightly so."
