Tech-Driven Holistic Wellness: A Guide for Leaders in a Digital Age

The intersection of technology and personal wellness is here. This vibrant industry offers consumers unprecedented insights into their bodies, including sleep, recovery, cycle tracking, and more to live healthier lives more easily than ever.

Key Technologies and Trends for Wellness Startups

Has any technology revolutionized personal health like wearable devices? The rise of fitness trackers in watches and rings has created 24/7 monitoring for people, watching everything from blood pressure and O2 saturation to stress levels, heart rate and daily steps. Fitness businesses within the wellness market can offer personalized health tracking, all from your phone — what could be easier?

These wearables often feed their biometric data directly into mobile health apps, although this is another sector of the industry that has seen explosive growth without wearables as well. Apps allow you insights and summaries from the data collected from wearable devices, as well as access to on-demand healthcare, including meditation, nutrition assistance, and mental health assistance.

Since 2020, telehealth platforms have also seen massive growth across all age groups. These digital tools expand healthcare access for people in rural areas, but can also create access to necessary services like virtual therapy sessions or personal trainers, as well as remote mental health and nutrition coaching, and online consultations with health professionals.

All of this technology comes together in AI — artificial intelligence programs. Rapid advances in the last few years have created a reality where people can reach out to an AI bot and receive instant, personalized wellness plans, tailored recommendations for fitness goals, and even predictive health outcomes — without ever leaving their home.

The next step of this is bringing holistic health to VR and AR experiences. The future of holistic health may not require airplane tickets to remote island destinations where people can embark on a wellness retreat from their couch, attend a guided meditation with a world-renowned guru via a mindfulness app, and use data science to better their overall health.

Wellness Market Growth and Opportunities

One analysis from the Global Wellness Institute predicts that by 2027, a mere two years from now, the global digital health market will be worth over $830 billion, while chatbots and AI in health care is predicted to have 26% YOY growth. Statista predicts that the US market alone will be worth $83 billion by 2029.

More than ever, people want to take their health into their own hands and create a lifestyle that allows them to proactively address potential health concerns, rather than reacting to a diagnosis. But this information must be accessible and easy to understand, which is where the expertise of holistic tech companies comes in, to take this data and translate it into actionable advice and steps for people to follow.

Creating healthier ways forward is only sustainable if it does not create large impositions for people living their daily lives, so tech companies must make these solutions convenient and personalized. Consider virtual personal training, complete with personalized nutrition, all delivered from a smart mirror in a home gym, or a wearable device that helps women’s health by tracking hormonal fluctuations throughout their cycle, with personalized workout plans. The wellness solutions are nearly endless!

Holistic wellness is a rapidly evolving industry that grows alongside healthcare technology and advances in predictive analytics. This means the risks this industry faces evolve as well; some overlapping with other holistic industries like cannabis and others more similar to tech companies.

Data Privacy and Security

Data security is the biggest and most crucial task for tech companies in every industry, especially when personal health information is involved. It’s not just about consumer trust — it’s about compliance with state, federal, and international regulations. HIPAA mandates the protection of protected health information (PHI) and tech companies wade into healthcare requirements when dealing with personal and mental health data. There are also requirements on the state level, like California’s Consumer Privacy Act (CCPA) that create strong privacy protections around consumer data and informed consent.

The push for data security is an international one. In the European Union, the General Data Protection Regulation (GDPR) creates guidelines for how companies handle personal data, mandating levels of responsibility and transparency. Given the increasing risk of data breaches (and the high cost associated with them) protecting personal consumer information isn’t just good for business — it’s mandatory for success.

Product Liability and Efficacy

Protecting personal data covers one exposure, but how you use it creates another exposure. People reach for holistic technology and wearable devices to get insights into their bodies and improve their well-being — but this information must be accurate. Businesses that provide inaccurate data from wearable technology or unreliable AI responses open themselves up to product liability risk.

Product liability risk can also come from misleading claims or information about holistic technology or wellness products. If a company is found to be exaggerating the efficacy of its products or making unsubstantiated claims, consumers may react with lawsuits. There is also the risk of technology failure and product defects with wearable technology. A ring or wristwatch that causes a skin reaction is a liability.

Professional Liability (E&O)

Advances in technology have made it easier than ever for consumers to connect with health professionals and get recommendations, but telehealth, mental health apps, and other holistic tech platforms are not without risk. Not being seen in person creates a new kind of risk for consumers, who may feel companies that provide inaccurate information are negligent in their responsibilities, opening the door to professional liability claims.

Telehealth communications make it easier for people to be seen from anywhere at any time, but they also make it easier for medical professionals to make errors or overlook important details. Remote health monitoring companies may provide a valuable service, but they also incur steep liability risks should something go wrong or be missed.

Regulatory Uncertainty

The holistic technology industry is evolving at such a rapid pace that regulations are struggling to keep up, creating uncertainty around the future of digital health technologies. Tech moves at light speed compared to regulations and the gap between the two is tricky for companies to navigate. Will the state-level or federal government step in to provide more oversight for these companies? Will they continue to be allowed to grow unchecked? Where does the Food and Drug Administration (FDA) fit into these regulatory requirements to protect consumers?

Managing risk is an ongoing process for every business, particularly those rapidly evolving industries. While each company’s individual risk management strategies are tailored to your unique business and exposures, holistic tech companies have many similarities that need similar tactics.

1. Proactive Compliance

Tech companies, by nature, collect data from their users, which they turn into actionable information. But users share this data with the understanding that it will be protected — not sold, and not exposed. Holistic tech companies must uphold their end of the bargain with a strong data governance framework that is built and regularly maintained to protect user data.

This should include comprehensive security protocols and adherence to cybersecurity best practices. Encrypting user data, establishing levels of access controls, and regular audiences to identify vulnerable spots help keep data safe. It’s also important to do because it may be a matter of compliance, depending on where the company is based. Staying up-to-date on evolving regulations and guidelines at the local, state, and federal level ensures your business remains in compliance.

Users of holistic technology may understand this exchange agreement, or they may not. Either way, holistic tech companies need to be transparent about the data they collect and how it’s used. Including information about your privacy policy and the measures you take to protect their data helps keep users happy.

2. Technology Reliability and Validation

Tech companies believe in their technology and its ability to change lives — but public trust is not so easily won. Rigorous testing and validation of novel technologies is important prior to launch to ensure that by the time the end user gets their hands on the tech, it performs accurately and reliably.

Part of this testing is quality control, which is ongoing from conception through every update. Tech bugs are tricky and may appear without warning on hardware and software. Regular quality control on existing techs and thorough testing of any updates helps keep users happy and companies out of trouble.

Claims of wellness improvement are common for holistic tech companies, but these must be made carefully to avoid incurring liability. Having clinical validation of your wellness interventions with measurable data on their efficacy is the best way to mitigate this risk — no one likes unfounded claims.

3. Ethical Considerations in Consumer Health

Everyone is equal in holistic care, right? Unfortunately, we live in an imperfect world and those imperfections bleed out, including into technology. Algorithmic bias is a problem that all technology companies must address — not just in the holistic care space, but especially here. AI algorithms can inherit the biases of their programmers and it’s the responsibility of every company to create the opportunity for fair and equitable wellness recommendations, regardless of age, race, gender, sexuality, body composition, socio-economic level, or any other demographic identifiers.

Another ethical consideration holistic companies must address is user autonomy. It’s easier than ever to gather data, but not every customer wants — or knowingly consents — to the same level of sharing. Tech companies must respect user autonomy and provide informed consent on the data they gather, what is essential, and what is optional. As more data is gathered from our daily lives, the conversation around data ownership and control is growing. Tech companies need sleep data to provide a sleep score — but should they also own all of the sleep data from all of their users, or should users own their own data? There is no clear answer, but it is an unavoidable conversation.

Insurance Solutions for Digital Health and Wellness Businesses

A comprehensive umbrella of insurance coverage is an important part of protecting your investment in holistic wellness technology. While every business has unique needs and thus a unique umbrella of coverage, there are several policies that all companies benefit from having. These include:

• Cyber Liability Insurance: This policy provides businesses with a safety net against the increasing risk of cyber attacks. Cyber liability insurance helps cover financial losses or expenses associated with hacking, data breaches, online fraud, cyber-attacks and privacy violations.
• Professional Liability: Also called errors and omissions (E&O) insurance (hence, E&O) this policy helps protect your bottom line against claims of negligence, poor work, or errors while providing services or recommendations. This policy is separate from general liability and just as important for holistic tech.
• Product Liability Insurance: Rapid growth in industries like holistic tech can bring new risks and unforeseen problems. This policy helps your business by covering claims that arise from product defects or injuries, like those caused by wearable devices or a bad batch of supplements.
• Business Interruption Insurance: This policy helps your business mitigate financial losses caused by disruptions, which can include system outages, cyber-attacks, and other unforeseen events, separate from cyber liability.

Blazing a new path forward is not easy — but it can be the key to success in creating a long-lasting business that helps change lives while combining the power of technology and traditional holistic healing methods. Protecting your time and investment keeps business moving smoothly, even in the face of unexpected challenges.

Protecting your holistic wellness company can seem confusing; however, we’re a full-service insurance brokerage working with carriers worldwide to offer you the best coverage possible. We’re here to help! Please reach out to us today by email [email protected] or calling 646-854-1093 for a customized letter or learning more about your holistic wellness insurance options.