S&P warns: Cyber threats weaken commercial health care industry

TLDR:

Key Points:

• S&P Global Ratings sees commercial group health insurance as relatively stable
• Specialty drug costs and cyberattacks are the main concerns

Cyber risk rises as a commercial health threat

S&P Global Ratings has identified commercial group health insurance as a relatively stable segment of the U.S. insurance market, with a focus on specialty drug costs and the emerging threat of cyberattacks. Speciality drug costs remain a top concern for insurers, but the increasing frequency and severity of cyberattacks pose a new challenge to the industry.

Analysts emphasize the need for insurers to prioritize cybersecurity measures in order to protect sensitive patient data and maintain the integrity of their operations. With the rise of telehealth services and digital health platforms, the vulnerability to cyber threats has only increased, making it essential for insurers to invest in robust security protocols and technologies.

Overall, the article highlights the growing importance of addressing cyber risk in the commercial health insurance sector, in addition to the ongoing challenges posed by rising drug costs. Insurers are urged to stay vigilant and proactive in mitigating these risks to ensure the long-term stability and security of the industry.