The pharmaceutical and life sciences sector can be volatile and potentially devastating for insurers, but the industry must continue to innovate and smooth out the bumps, as Mark Wood, president & CEO, LifeScienceRisk, a subsidiary of RSGUM Healthcare, explains to Intelligent Insurer.
The unpredictability of the pharmaceutical and life sciences sector, given its infrequent nature and reliance on innovation, can result in devastating claims for insurers. However, insurers must continue to strive to smooth out the volatility and make these risks more stable.
In PwC’s 2014 17th Annual Global CEO Survey, which focused on the key findings in the pharmaceuticals and life sciences industry, the message that innovation in general is difficult to insure because there are no relevant models to facilitate underwriting and pricing was conveyed clearly.
The survey found that loss control and risk management services need to be invented on the fly for an innovative product or service, yet product and service innovation are essential for pharmaceutical and life science sector risks.
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LifeScienceRisk, RSGUM Healthcare, healthcare