Monday 14 March 2022

Health insurers digital therapeutics revenue reaches US$8 billion by 2026 - Juniper Research

KUALA LUMPUR, March 14 -- A new study from Juniper Research has found digital therapeutics revenue from health insurers will increase to US$8 billion by 2026, up from US$1.1 billion in 2022; representing growth of 610 per cent over the next four years. (US$1 = RM4.196)

According to a statement, digital therapeutics are clinically validated software programs for treatment of chronic medical conditions, either independently or in conjunction with other therapies.

The report found digital therapeutics facilitate the proactive mitigation of chronic medical conditions before they require costly interventions, enabling health insurers to reduce long-term costs per patient.

However, it highlighted that these savings will be limited to health insurers in developed regions, where consumer devices and digitalised health infrastructure are ubiquitous.

As such, it noted health insurers in Africa and Latin America will contribute less than two per cent towards health insurer-led digital therapeutics revenue in 2026.

This new research, Digital Therapeutics & Wellness: Key Trends, Business Models & Market Forecasts 2022-2026, identified that insurers will benefit from an ongoing shift among digital therapeutics vendors towards engagement-and results-based payments.

It recommends therapeutics providers looking to leverage this trend prioritise the development of performance benchmarks, as demonstrating improvement and preventing patient abandonment will become a direct monetary issue.

The report forecasts the number of people using digital therapeutics will increase by 381 per cent over the next four years, and recognises machine learning will be key to this growth by facilitating advanced data analytics, remote patient monitoring, and real-time conversational coaching.

However, it cautioned that an ongoing lack of standards surrounding the use of machine learning within digital therapeutics will result in vendors limiting its role in their offerings.

Juniper Research provides research and analytical services to the global hi-tech communications sector; providing consultancy, analyst reports and industry commentary.

-- BERNAMA

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