Introduction
The 2025 Digital Healthcare Report by CFC offers a comprehensive overview of the burgeoning digital health sector, emphasizing notable growth trends alongside increasing cyber risks and regulatory challenges.
Industry Expansion
Digital healthcare is witnessing rapid expansion, especially in regions like the United States, Europe, and Australia, despite facing rising operational risks and legal complexities. The US digital health market saw a 40% increase in new inquiries from 2022 to 2024, fueled by enhanced investments, technological advancements, and a growing demand for personalized care and chronic disease management. In Australia, new business activity surged by 92% during this period. While the US and UK continue to be CFC’s largest markets, nations such as Ireland and Denmark are emerging rapidly, with some experiencing growth rates surpassing 200%.
Role of Artificial Intelligence
AI’s influence in digital healthcare continues to grow, moving beyond diagnostics to become an integral part of both patient-focused tools and administrative systems. From enhancing operational efficiency to reducing clinician workloads, AI is increasingly embedded in core healthcare functions. Despite a decline in private equity investment in digital health in 2023, interest in AI-driven technologies remains strong, serving as a key catalyst for sector evolution.
Challenges in Digital Healthcare
Rebecca Pelling, CFC UK and International eHealth Product Manager, highlighted the vast growth opportunities in digital healthcare, which can enhance equitable access to care. However, she noted the difficulties in navigating the ever-changing regulatory landscape.
Rising Cyber Threats
In 2024, the digital healthcare sector saw a significant rise in cybercrime, underscoring the urgent need for robust cybersecurity strategies and presenting new opportunities for insurance brokers. The sector reported 677 major data breaches, impacting over 182 million individuals. Ransomware attacks on healthcare organizations rose by 278% from 2018 to 2023. The average cost of a healthcare data breach reached US$10.93 million, nearly double that of the financial sector.
Cybercrime Attractiveness
Several factors make the healthcare sector appealing to cybercriminals. Electronic health records (EHRs) can fetch up to US$1,000 each on the dark web, compared to US$5 for stolen credit card data. The essential nature of healthcare services often compels organizations to pay ransoms to quickly resume operations. Additionally, the sector is notorious for outdated systems and unpatched software, increasing its vulnerability to cyberattacks.
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