The year 2025 has been marked by robust demand for international private medical insurance (IPMI) and its associated benefits.
It has also seen a continued drive towards more personalised digital solutions and increased global mobility of workers with people heading to non-traditional locations.
But concerns around the state of global economies persist as well as around cost pressures and cost management as medical inflation stays stubbornly high.
Hard earned growth as demand rises
“This year has been one of steady but hard-earned growth for the international private medical insurance sector,” Joe Thomas, managing director of April International UK, tells Health & Protection.
But margins have remained under pressure, Thomas continues.
“Inflationary medical costs have been the dominant challenge,” he adds.
“Providers worldwide are facing higher hospital charges, increased pharmaceutical prices and widening fee variations across geographies.
“Currency fluctuations have added another layer of volatility, particularly in markets where claims are settled in US dollars.”
Shift away from traditional expat hubs
However, despite these pressures, the underlying demand for IPMI is very strong, Thomas reports.
“Global mobility has continued to rebound, with more professionals working internationally or adopting hybrid expatriate lifestyles,” he continues.
“These customers now expect seamless digital health services, from virtual consultations to app-based pre-authorisation, so insurance providers have had to accelerate digital transformation to keep pace.”
Thomas points to several structural trends shaping the international private medical insurance sector.
“One of the clearest is the movement of globally mobile individuals toward lower-cost or fast-growing economies,” he says.
“Economic pressures, changing tax environments, and emerging business hubs are encouraging people to relocate to destinations across Southeast Asia, Latin America and parts of Eastern Europe.
“This shift is broadening the geographic footprint of demand and placing new expectations on providers to deliver robust networks and reliable support in markets that may be less mature.”
Axa Global Healthcare global head of distribution Andy O’Cain also notes these emerging hubs.
“With the gradual shift away from traditional expat hubs into new territories across the world, providers are required to expand geographically, but not at the expense of maintaining the quality of their network,” O’Cain says.
“We recently announced a strategic collaboration with Old Mutual General Insurance Kenya Limited.”
Increased demand for digital services
A further trend has been the continued demand for digital services as Megan Lewis, senior business development manager at William Russell, notes.
“It seems like all providers have quite a wide range of digital tools for members and there seems to be a growing push from insurers to encourage members to use these as first point of call – which works for members a lot of the time as it’s often more convenient,” Lewis says.
“William Russell will be joining that list of providers from January 2026.”
In December, the provider launched Elevate, adding a virtual GP service, preventative and mental health support as well as help with ensuring expats stay safe on assignment as part of a range of new complimentary digital services to all members, including employees of group clients.
According to Mariana Ishchuk, global head of product management and innovation, health at Allianz, the main changes across the IPMI market over the year include the integration of digital health solutions and telemedicine, which have become essential in addressing overutilisation and hospital overcharging.
“There is a significant increase in demand for mental health support, with insurers expanding coverage to improve accessibility to mental health services,” Ishchuk says.
“The market has also seen a shift towards flexible solutions that can adapt to evolving regulatory landscapes across different jurisdictions.
“Additionally, there is a growing preference for self-service options for submitting claims, locating providers, and tracking benefit utilisation, which enhances customer experience and facilitates efficient claims management.”
Global premiums on the rise
But 2025 has also been a year characterised by growing premiums due to medical inflation and rising treatment costs for insurers.
As a result, insurers report greater stability and less volatility in pricing than in years past, but customers are making value-based compromises on cover due to rising cost of living and industry-wide increases in insurance costs.
This concern extends to advisers.
Chantal Leprêtre, client advisor at SIP Medical Family Office, says: “I had a 30-year-old client who calculated with a general increase of medical inflation of 14% compounded to 65 his premium was £250,000.
“So I think long term, medical inflation is definitely something that clients just don’t understand.
“They think that general inflation is 2% and they think that medical inflation, while related to general inflation in terms of the costs going up, is its own thing as well.”
Concerns about the economy
However customers and the sector as a whole are not immune to concerns around the economy – both at home and abroad.
Marcia Reid, non-executive director at Sherwood Healthcare, says: “The biggest trend has been the nervousness about the economy in general.
“Both individuals and corporates are looking very carefully at their spending habits and concerns and this lack of confidence in growth is having an impact in all areas.
“We’re not seeing companies cancelling their schemes, but we are seeing that they may be covering fewer people as they’re not replacing leavers.
“These trends will continue unless there is a marked increase in confidence in the economy – UK and global economy.”
Technology and SME growth
As for what lies ahead for the sector moving into 2026 and beyond, the next year may be characterised as one where technological interventions continue as demand for IPMI grows.
John Kaye, vice president EMEA market development at UnitedHealthcare Global, says: “The future of international health and protection lies in the convergence of technology, data and human-centric design.
“We’re investing in platforms that create a truly borderless health experience for members.”
Additionally, O’Cain reports significant growth in the SME market, as organisations are increasingly positioning healthcare as a critical part of their employee benefits offering and retention strategy.
“We’re also seeing that larger corporate groups are evolving their approach and moving beyond the traditional formula for IPMI by putting increased focus on wellbeing and mental health support – this is taking place globally,” O’Cain adds.
There has also been a noticeable increase in demand for IPMI among local nationals and high-net-worth individuals that are changing the consumer profile which is traditionally expat-based.
Furthermore, digital health tools, such as apps, portals and virtual services, are now often regarded as standard, rather than a differentiator among providers.
