Insurance for Pharmaceutical

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Overview

The pharmaceutical industry is a rapidly changing global environment, undergoing a massive transition from merely treating diseases to preventing and managing them. Nevertheless, this market continues to discover, develop, and market pharmaceutical drugs to improve the quality of life for patients.

Many experts describe pharmaceutical innovation as having flatlined for nearly a decade. Mostly because the US government has felt the intense financial pressure, leaving little room for developmental momentum. However, sales have continued to climb. But, it only makes sense that this industry is facing challenges adjusting to the new shift in society’s approach to healthcare.

What’s more; is that consumers demand value and measure it according to cost-effectiveness and positive outcomes—a different mindset from days past. Still, with data-driven scientific discovery and medicine, the pharmaceutical industry is geared to navigate the ongoing changes.

Revenue lost to fraud

3.5

tn

Companies worldwide lose $3.5 trillion to fraudsters every year — and the figures continue to devastate small and large businesses.

Data Breach Costs

$4

m

The average total cost of a data breach in 2020 was $3.86 million and the average cost per individual record that was lost was $150 (IBM).

Why is Insurance for Pharmaceutical Organizations Important?

Although the pharmaceutical industry faces enormous challenges today, these forces are the same ones that will offer opportunities in the near future. This market is cutting through the fog of multiple vulnerabilities armed with a robust scientific base and insight into genetics and genomics.

With rising regulatory requirements and severe tax reform influencing the market’s momentum, pharmaceutical companies must protect their assets. Insurance for pharmaceutical companies is what will ensure that patients’ needs are met continually, and companies stay afloat, in general.

Furthermore, pharmaceutical R&D is expected to grow by 2.4% in the next couple of years. Adequate insurance coverage will help support R&D as well as product sales, extending the life of the company overall.

Advocacy Groups

Patient advocacy groups influence governments and regulators heavily. These organizations lobby for officials to address inequalities for medical care of rare diseases. Naturally, this creates challenges for pharmaceutical companies, forcing them to take competitive risks to develop medicine for these specific diseases. All the while, chronic diseases are monopolizing much of the healthcare budget.

Patent Protection

As time passes, specifically by the year 2021, many medical patents will be expiring. This milestone puts up to $148B of pharmaceutical sales at risk. What this could mean is a grinding halt on the industry’s upward trajectory—or even a second patent cliff.

Tax Reforms

Pharmaceutical company mergers and acquisitions (M&A) have taken a step back because of recent tax reforms—specifically, the Affordable Care Act (ACA). Many pharmaceutical companies have mounds of cash invested overseas in research and development (R&D) programs. To move forward on any US-related M&A could subject that money to heavy taxation, which might cause more loss than gain in the end.

Pharmaceutical Insurance Frequently Asked Questions

The cost of insurance for Pharmaceutical companies will depend on several things, including the size of the company and the stage of the company in its development process. Other factors include:

  • Exposures: risks being insured.
  • Company practices: views on safety, compliance, and risk management.
  • Program structure: the amount of deductible and willingness for a company to assume more risk
  • Claims history: the type and amount of past claims against the company

Types of Pharmaceutical Companies that need insurance

  • Research and development companies
  • Manufacturers
  • Distributors
  • Biological products companies
  • Mainline brand developers (i.e., Pfitzer, Merck, Novartis, etc.)
  • Generic competition companies

How it works

Finding insurance coverage doesn’t have to be painful. We aim to make the purchasing experience as streamlined & intuitive as possible.

1
Get a quote

Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

1
Get a quote

Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

2
Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

2
Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

3
Stay one step ahead

To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.

3
Stay one step ahead

To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.

Jonathan Selby, General Manager

Meet your specialist

Jonathan spent the first 5 years of his professional insurance career working as a generalist broker at a traditional firm on Long Island.  Intrigued by the notion of how technology can be leveraged in the industry, Jonathan joined the Founder Shield team in early 2016 as an Account Executive, and quickly grew into his current leadership role of General Manager.  He works to oversee client strategy and communication, and has fostered a culture of providing unparalleled service and risk consulting for some of the fastest growing companies in the world.

Outside of work, Jonathan can be found on the basketball court and chess board (…but not at the same time.)

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