The rapid digitalisation of the health and care sector is transforming the way services are delivered, but it is also introducing a complex new set of risks that insurers, providers, and policymakers can no longer ignore. From electronic health records and telemedicine platforms to AI-driven diagnostics and remote monitoring, technology is now deeply embedded in patient care. While these advances improve efficiency and access, they also expand the sector’s exposure to cyber threats, operational failures, and governance challenges.
One of the most pressing concerns is cybersecurity. Health and care organisations hold vast volumes of sensitive personal and medical data, making them prime targets for ransomware attacks and data breaches. A single cyber incident can disrupt critical services, compromise patient safety, and result in significant regulatory penalties. Insurers note that many healthcare providers still operate on legacy IT systems, increasing vulnerability and complicating risk assessment.
Beyond cyber risk, digitalisation is reshaping clinical and operational risk profiles. Over-reliance on digital systems can create single points of failure, where outages or software errors delay treatment or interrupt care delivery. The growing use of AI and automated decision-making tools also raises questions around accountability, transparency, and clinical oversight, particularly when technology influences diagnosis or treatment pathways.
Regulatory compliance is another evolving challenge. As data protection and health regulations become stricter, organisations must ensure that digital systems meet governance, privacy, and reporting standards across jurisdictions. Failure to do so can trigger reputational damage and financial losses, alongside patient distrust.
For insurers, managing these emerging risks requires more than traditional coverage models. There is a growing emphasis on proactive risk management, including stronger cyber hygiene, system resilience testing, staff training, and closer collaboration between insurers, technology providers, and healthcare organisations. As digitalisation accelerates, the sector’s ability to balance innovation with robust risk controls will be critical to ensuring safe, sustainable, and trusted health and care services.
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