The pandemic has focused minds on our own mortality as never before – and high net worth (HNW) individuals are no different, with behvaiour shifts becoming apparent.
In terms of their own health, this group is increasingly more focused on preventing illness rather than a seeking a cure for conditions down the line, according to advisers and insurers.
They are also increasingly growing more proactive in approaching their adviser to speak about private medical insurance (PMI) and making use of the added benefits in any international private medical policy they may have.
But this is also a group that is seeking a more personalised digital service from their provider, with one eye on the future as they seek to leave a legacy for their loved ones.
Healthcare prioritised over handbags and cars
Qualitative and quantatitive reports show the pandemic acted as a wake up call for many high net worth individuals.
Bupa’s latest executive wellbeing index showed nine in 10 high net worth individuals planned to make changes to their health and lifestyle as a result of the pandemic.
The findings also showed high net worth individuals have invested on average £120,000 on health and wellbeing treatments over the last 18 months for services such as vitamin therapies, mindfulness retreats, and food preparation therapies.
And around two thirds (59%) of these customers have begun investing more in their health and wellbeing than luxury goods such as handbags and cars.
“The pandemic prompted a renewed focus on health and wellbeing, particularly among the world’s wealthy,” Neil Kirby, marketing director at Bupa Global, tells Health & Protection.
“Spend in this area grew significantly and our research found health spend among the wealthy in the UK was higher than that on luxury goods, clothing, technology and even holidays.”
Proactive contact
According to Zanele Sibanda, head of internal markets at Towergate Health & Protection, wealthier individuals are being more proactive about getting in touch and the value they now place on their cover means they are making sure they keep policies in place.
But Sibanda added that increasing numbers in this group are also making use of their international private medical insurance (IPMI) policy due to the breadth of benefits covered.
Brian Walters, managing director of Regency Health, tells Health & Protection these individuals are typically cash rich and time poor, so a high level of service is essential.
“Many will deal through family offices, and a good rapport between these offices and the broker can be key to the relationship,” he said.
“International policies are often most suitable, with their rich benefits and geographical breadth of cover, although some high net worth clients will prefer to cover out-of-pocket expenses personally, obviating the need for administration with the insurer, and insure only for major medical expenses, often with a high deductible.”
Richness of benefits
According to Kirby, when it comes to international health insurance, for many people in this ince group global cover is no longer the primary factor when selecting a policy.
“Customers want a richness of benefits, as well as access to the world’s leading specialists and first-class health facilities,” he added.
“As a result, we have seen far greater emphasis put on prevention, as well as cure, and there has been increasing demand for holistic wellbeing services. We believe prevention will continue to be a key theme, with customers able to be more engaged in their healthcare.”
Tech savvy individuals
This is also a tech-savvy group, says Joe Thomas, managing director of April International UK, noting they may look for simplified digital experiences and solutions, such as online medical consultations, that could fit around their busy lives and travel schedules.
“Equally, they often expect to have dedicated, personal account managers who would go above and beyond their expectations,” he continues.
“Access to a wide network of medical facilities is also important as HNWs want to be able to choose a doctor or a medical institution that meets their needs and travel plans.”
Insurers and advisers agree that customers are increasingly engaging with them through digital health services which became “turbo charged” by the pandemic and have enabled healthcare to be truly globalised.
Focus on legacy
And looking ahead, while the cost of living crisis enveloping the country is not primarily a concern for richer individuals, leaving a legacy most certainly is, explains Chris Osman, strategic account manager for whole of life at Canada Life.
“We are starting to see an increased focus on ‘legacy’ whether that be wealth, property or even the security to make memories,” he says.
“For high net worth individuals’ inheritance planning is a key consideration when deciding to purchase a protection solution and we have seen an increased number of positive enquiries for an inheritance tax (IHT) focused product.”
Historically an estate worth more than £1m would be perceived to be a problem for the high net worth population, Osman notes.
However with inflation and rising house prices coupled with the freeze in IHT thresholds, more individuals will fall into this space and want to use protection products to manage their IHT liabilities.
“We are seeing an increase in enquiries from this demographic of high net worth individuals,” he continues.
“High net worth individuals that don’t effectively plan for the future will leave an IHT bill that could lead to difficult decisions for family and loved ones, possibly even leading to the sale of the family home.
“As they individuals increasingly plan for the future with this renewed perspective, we will continue to see increased demand for a solution to address these concerns and make sure an individual’s legacy is protected.”