When the UK Biobank scandal hit the headlines, it was a stark reminder of the dangers around storing sensitive information.

The medical data of 500,000 people had been listed for sale on a Chinese website and with artificial intelligence playing an increasingly significant role in medicine, the chances of it happening again are increasing.

But insurance can play a crucial role in ensuring we all benefit from the medical potential of AI, without compromising safety.

AI in healthcare

From diagnostics and clinical decision support to research and administration, AI offers the potential to improve outcomes and efficiency across healthcare. It’s increasingly embedded within the NHS.

With that comes responsibility to ensure it’s used safely, responsibly and with appropriate oversight.

Understanding the risks

While AI can enhance medical practice and support innovation, it introduces new risks, including:

Clinical and patient safety risk
Errors, bias or inappropriate use of AI can contribute to misdiagnosis or treatment challenges and even where AI is advisory, clinicians and organisations are accountable.
Data protection and cyber risk
Medical AI relies on sensitive personal data, increasing exposure to data breaches, regulatory action and reputational damage.
Regulatory and governance risk
Boards and senior leaders responsible for oversight and validation must keep track of evolving regulatory framework for AI in healthcare.
Operational dependency
Greater reliance on technology and third‑party providers increases the impact of system failures, outages or cyber incidents

Managing AI risk effectively

Using AI safely in medicine requires a risk‑led approach with a focus on two critical points:

Human governance and oversight
Until evidence-based results and robust tests can ensure sole reliance on AI for medical diagnosis is safe, there must be governance and oversight by medical experts and practitioners. Humans need to be part of the decision-making process.
Robust data and cyber controls
Health data is deemed ‘special category data’ according to GDPR rules, meaning it requires higher protection. MedTech businesses that hold health data must ensure they have robust measures to keep it safe.

How MedTech insurance supports responsible innovation

Insurance helps organisations innovate with confidence by providing protection when things go wrong:

Medical malpractice and clinical negligence insurance protects against claims where AI contributes to diagnosis or treatment decisions.
Professional indemnity insurance covers errors in AI design, development, implementation or advice.
Cyber and data protection insurance supports incident response, regulatory defence and business interruption following a cyber event, and should take into account the GDPR ‘special category data’ rules.
Directors’ and Officers’ insurance protects senior individuals where AI governance or oversight decisions are challenged.