The modern, globally mobile workforce and the rise of the digital nomad presents a unique set of challenges for insurers and how they handle individual international private medical insurance (IPMI) products.
Meanwhile, the rising cost of healthcare globally, particularly post-Covid, has posed significant challenges for insurers, as they try to find innovative solutions to manage increasing costs while providing comprehensive coverage.
That has helped to create the development of a more affordable IPMI hybrid, which is now expanding beyond its origins in Hong Kong.
And as individuals more readily navigate diverse healthcare systems across different countries, the market must also adapt, so how are insurers and advisers meeting the new demands of today’s globally mobile individuals?
Rise of the hybrid
One of the most significant recent developments is the rise of hybrid IPMI products, which blend pure IPMI with local plans.
Health & Protection first reported in September last year on the development of a new product in Hong Kong, which had blurred the market for IPMI policies there.
From Hong Kong the hybrid IPMI trend seems to have spread through Singapore and even to the Middle East – with plans to expand to other countries in Asia.
This September Health & Protection reported that MSIG Asia was joining with Serenity Health Partners to launch a new product that was intended to bridge the gap between local health insurance products and IPMI with a new regional private medical insurance (RPMI) product.
This will first be launched in Singapore, before being rolled out to the emerging markets of Indonesia and Vietnam in the following year.
Over in the Middle East, Amber Musson-Thorp, group commercial director for Lifecare International, based in Qatar says the issue of hybrid solutions such as RPMI is crucial for today’s customers.
“People want it all of course, but mainly they want to be able to have cover in their home and host country. That kind of option is mainly offered by local insurers,” she says.
“What people are looking for is quite clear – we need a hybrid local international plan but with a tier-one direct settlement network that can be compliant across the Middle East.
“In practice however, this is not easy at all.”
Adapting to digital nomads
Another major area for insurers is adapting to the changing needs of globally mobile individuals, including remote workers and digital nomads.
That involves offering customisable plans, seamless claims processes, and efficient support services.
As April International UK managing director Joe Thomas notes: “While our long-standing, more traditional expat clients continue to be a core part of our business, we’re witnessing a surge in demand from emerging groups such as digital nomads, high-net-worth individuals, and frequent travellers.”
And Kieran Brown, managing director UK at SIP Medical Family Office agrees: “The traditional expatriate assignee is being replaced by the digital nomad, and corporations are increasingly looking to employ locals while still preferring international solutions for their multinational operations.”
And increased international travel means more emphasis is being put on managing costs by many customers, as they try to ensure international coverage.
Key to all of this is ensuring that clients do not have to face excessive costs.
Aniz Sirajudin, regional IPMI leader, Centre of Excellence at Mercer Marsh Benefits based in Singapore tells Health & Protection: “Providing access to quality healthcare networks globally is crucial. Insurers should ensure their clients can receive care without significant out-of-pocket expenses, regardless of where they are.”
Navigating between countries
With globally mobile individuals often moving between countries this is not an easy task for insurers.
As Amelie Dionne-Charest, co-founder and managing director of Alea, based in Hong Kong says: “Insurers need to provide international coverage that is not only comprehensive but also flexible, allowing for seamless integration into diverse healthcare environments.“
The challenge is to be able to offer a product that can work across borders, while keeping a lid on costs.
Cultural sensitivity is a key part of that as Sirajudin highlights: “Understanding cultural differences and preferences can enhance customer experience and satisfaction, making it important for insurers to tailor their services accordingly.”
The Middle East is a case in point.
Musson-Thorp explains: “In the emerging Middle Eastern markets companies and individuals don’t want to pay international insurer rates but local insurers do not provide the same level of cover and are under-pricing to retain market share.
“This in turn drives up the need to decline treatment at every opportunity which is a frustration in the local markets and creates a distrust in insurance.”
She continues: “For the established markets, international insurers are constantly under pressure to become more sustainable and people are dropping down to tier two insurers or high-end local plans to manage their budget.”
Peter Whittington, head of international people solutions, in the Asia Pacific region for Aon says: “Insurers need to drive a move from fee for service care to value based care, which is a significant change for medical providers.”
Another aspect is speed, as insurers need to move fast to keep up with changing domestic rules.
Whittington notes: “Constant changes in the geopolitical landscape as well as rapidly changing compliance and regulations mean insurers need to move fast to adapt their products and support.”
Technology and mental health
Meanwhile, the role of technology is continuing to increase, with more customers increasingly seeking user-friendly digital tools to manage their insurance policies, submit claims, and to access healthcare services.
“Customers today seek products that are easy to understand, have straightforward policy administration, and, most importantly, a hassle-free claims process,“ according to Dionne-Charest.
“Increasingly, insurance customers expect robust digital tools that facilitate quick and easy claims submission and policy management, reflecting a demand for a modern, user-friendly approach to insurance.”
Included with this, as for health insurance in general, is an increased focus on mental health – as providers seek to better support the holistic wellbeing of their clients.
Aon’s Whittington highlights this noting: “There is increased focus on preventative health and wellbeing including support for the acute challenges around mental health.“
Providers are also utilising technology to streamline processes, improve customer experience, and offer innovative solutions like telehealth and virtual consultations.
Sirajudin says: “Many providers are leveraging technology to streamline benefits management, making it easier for customers to access information, file claims, and receive support through user-friendly apps and online platforms.“
Changing benefits
Changing working patterns and travel routines also mean products must be designed, underwritten and sold differently.
Musson-Thorpe notes that some providers are changing benefits and responding to local requirements, and praised UnitedHealthcare Global in particular.
“Their reaction time and agility is applaudable but unfortunately the other big players feel more rigid these days,“ she added.
Longer lives
Ultimately one of the biggest changes the whole industry must adapt to is the fact that many customers are living longer than ever.
“While changing working patterns have some impact, the more pressing issue is the increasing longevity of customers, who may not always enjoy better health,“ Dionne-Charest continues.
“This demographic shift presents significant challenges for underwriting practices.
“Insurers must enhance their capabilities in assessing medical risks and providing coverage that is tailored to the specific needs of consumers, especially regarding their pre-existing and chronic health conditions.
“This adaptability is crucial in a rapidly evolving market,” she concludes.