The following text field filters the results that follow as you type.
Sector risks from supply chains to cyber and their impact on broker advice.
Published on 28 January, 2026
Life science businesses operate in a fast-moving, high-risk sector. From supply chain disruption and cyber threats to regulatory change, funding pressures, and rapid innovation, they face a unique set of challenges that can significantly impact operations, growth, and long-term viability.
For brokers supporting life science clients, understanding these challenges is critical. The right insight helps brokers support clients to stay protected, compliant, and resilient in an increasingly complex risk environment.
Seven key challenges shaping the life science sector
1. Supply chain vulnerabilities
Supply chains in life sciences are often fragile, with sole suppliers, specialist materials, and temperature-sensitive goods. Even minor disruptions can halt production, affect cashflow, or delay regulatory milestones. These exposures highlight the importance of property, business interruption, transit, and product recall protection.
2. Cybersecurity threats and data risk
Half of life science businesses say a cyber breach could cause major disruption. From clinical data to proprietary R&D and connected manufacturing, cyber incidents can halt operations or compromise intellectual property. These exposures increasingly drive discussions, particularly where cyber, professional liability, and professional indemnity overlap.
3. Funding pressures and economic uncertainty
Many businesses have high fixed costs, long development cycles, and rely on investment. Cashflow challenges can delay research and development, product launches, or regulatory approvals. Product liability, professional liability, and property and business interruption insurance can help mitigate these financial impacts.
4. Regulatory change and compliance burden
Life sciences is a heavily regulated sector across multiple regimes. Businesses face longer approval cycles, increased documentation, and enforcement risk. Professional liability and professional indemnity cover, alongside clear appetite and wording guidance, helps brokers advise clients effectively.
5. Innovation, AI, digital health, and emerging technologies
From SaMD and digital health platforms to advanced therapies and connected ecosystems, tech-enabled innovation brings new exposures. Device/software reliability, algorithmic bias, and overlapping cyber, professional liability, and professional indemnity risks mean specialist understanding is critical.
6. Talent shortages and skills gaps
Skills shortages in regulatory affairs, lab roles, manufacturing, and clinical research drive reliance on contractors and outsourced providers. Gaps increase professional liability and professional indemnity exposures and highlight the need for robust business interruption and operational resilience support.
7. Rising costs and operational overheads
Inflation in raw materials, energy, transport, and specialist labour increases the financial consequences of any loss, reinforcing the importance of accurate sums insured, business interruption, and recall protection.
What this means for brokers
Brokers who understand the pressures their clients face are better placed to support informed decision-making, identify emerging exposures, and help ensure insurance arrangements keep pace with how businesses are evolving.
Markel champions the sector
With 65 years of combined industry experience, we’ve built Life Science Combined to help brokers support clients through these complex risks, equipping you to confidently quote and place cover.
Life Science Combined is designed to address the seven key challenges life science businesses face, helping brokers support clients to stay resilient, compliant, and growth ready.
A substantial and growing market
The UK life science sector employs over 359,600 people and generates £146.9 billion* in turnover, making it one of the UK’s most economically significant and innovation-driven industries. For brokers, this represents a clear opportunity to grow portfolios, secure high-value clients, and strengthen your market position in a sector that continues to expand.
Learn more about Life Science Combined
*Source: Official Statistics, Bioscience and health technology sector statistics 2023 to 2024, published 2 October 2025.
