Biomedical and life science companies are placing greater emphasis on tailored insurance cover and reliable claims handling than on cost alone, according to new research from Markel UK.
The study, surveying buyers across the biomedical and life science sector, found that breadth and suitability of cover was the leading factor in insurer selection, cited by 58.3% of respondents. Claims handling was a key buying factor for 25%, while 16.7% highlighted insurer reputation.
Respondents consistently emphasised the need for insurance that covers the full business life cycle - from research and development through to commercialisation and distribution.
The findings reveal that certain covers are seen as non-negotiable within the sector. Professional liability and products liability for financial loss were considered mandatory by 91.7% of respondents, with public and products liability following at 83.3%.
Product recall cover was deemed essential by 66.7%, reflecting the operational and regulatory disruption a recall can trigger. The same proportion viewed property and business interruption cover as mandatory, signalling the importance of operational continuity. Legal expenses insurance also featured prominently, with nearly 84% considering it either mandatory or desirable.
The research also shed light on procurement behaviour. Some 83.3% of respondents said they use an insurance broker, citing industry expertise and experience as the primary reasons for their selection. Convenience and ease of process were noted as additional benefits, with engagement highest at renewal and during periods of operational change, such as launching a new product line.
Jo Sykes, broking director at Markel UK, said the findings reflected the regulated and specialist nature of the sector.
“Life science businesses operate in a highly specialised and regulated environment, so it’s essential that insurance arrangements reflect the realities of their risks,” Sykes said. “While cost will always be a consideration, the focus is increasingly on securing the right policy wording, specialist cover and dependable claims support. Added-value services and sector expertise can play a significant role in helping businesses protect their operations and plan for growth.”
The global life sciences industry was valued at US$412.74b as of 2023, encompassing biotechnology, pharmaceuticals, and healthcare services, with the biotech segment alone projected to reach US$727.1b in 2025.
Life science businesses – from early-stage start-ups to multinational corporations – face risks that span research, manufacturing, clinical trials, and global distribution, all of which require tailored insurance solutions.
Separately, QBE North America announced the launch of a dedicated life sciences insurance product in July 2025, designed to address the complex and evolving risks faced by medical product developers, manufacturers and distributors, offering liability protection across classifications including clinical trials, dental and medical devices, and specialty pharmaceuticals.
