When high net worth (HNW) individuals pay top dollar for their international private medical insurance (IPMI), it comes with strings attached. They expect higher levels of service, and brokers may have to adapt their regular approach to international private medical insurance (IPMI) customers.
But despite the extra demands, many brokers are willing to do whatever it takes to attract HNW clients, because while their numbers may be small, the importance of the HNW segment in terms of overall sales should not be underestimated.
Providers agree that HNW customers are tremendously important, given the value of their policies, sometimes exceeding those of SMEs.
Amelie Dionne-Charest, co-founder of Alea based in Hong Kong, told Health & Protection: “This is a very important segment for IPMI brokers. A single-high end IPMI policy may equate to an SME’s policy in premium value; or to 10 mid-market policies.
“These customers are generally very loyal. They value servicing and count on their broker’s expertise and experience to advise them in their best interest, and to take a very long-term of view of their insurance.”
Neil Carruthers, head of international benefits at Lockton Insurance Brokers and based in Dubai, said: “HNWs represent a tremendous value to Lockton, often we’re managing the needs of their business (or businesses) across multiple lines of insurance.
“From a sales perspective, we’ve seen annual premiums for individual policies for HNWs exceeding $100,000 on medical insurance alone, a considerable chunk of change by anyone’s standards, and the consulting piece that is attached to this is vital as healthcare costs are continuously on the rise.”
Broadway Insurance also identified HNWs as one of their three key markets, alongside entrepreneurs and companies.
Emma Wood, the advisory firm’s director of healthcare, notes: “The firm now arranges and administers about £12.5m on behalf of customers, the majority of which are large and complex and require an international solution.
“As such, we are focused on reimagining career opportunities to become the first choice for exceptional talent with ambitions to work on customers with international healthcare requirements.”
And it’s a similar case for April International.
Joe Thomas, the firm’s managing director, says: “The importance of the high-net-worth client for April International extends beyond mere volume metrics, as it hinges on their wider and significant influence within the business landscape.
“While in volume terms, this group may be smaller than our traditional client segments, their value transcends sheer volume.”
Beyond direct sales
But the value of HNWs goes beyond direct sales, as they can influence even larger company sales.
“HNWs, often holding senior positions in C-suite management, wield substantial control over broader client access,” Thomas continues. “They serve as gatekeepers and endorsers, leveraging their positions to open doors and influence buying decisions.
“The influence and endorsement provided by HNWs can exponentially enhance the reputation of April International. The strategic positioning of these influential individuals allows them to act as conduits to a wider clientele, making them a high-priority group for the company.
“In essence, the importance of HNWs lies not only in their financial contribution but also in their ability to serve as catalysts for business growth, reputation building, and expanded market access.”
Demands of HNWs
But the demands of HNW individuals are not just about a higher level of service, its also about certain novel requirements that the majority of other customers do not look for.
The requirements of the individuals for this market can differ greatly from average IPMI customers, with one of the top requirements being freedom of choice.
Jacklyn Tan, director of regional employee benefits for the Howden Group in Asia, said that HNW clients expect two main things: “Better turnaround time in terms of processes and flexibility in terms of the claim process and adjudication.
“Other than the above two pointers, I rarely hear any others,” she said.
Dionne-Charest of Alea outlines some of the points of differentiation for this market.
“HNW individuals value freedom of choice – the freedom to choose their doctor and to choose where to be treated,” she adds. “Doctor network limits or geographical constraints are not appealing to this segment.
“They also value a trustworthy sustainable product and a provider that can contain premium increases.
Another point of differentiation is what is not important for HNWs compared to other clients.
“Of less concern is the ease of the claims process,” she notes.
“While HNW customers value a seamless and efficient claims’ process, a claim’s App will not necessarily seal the deal. Most have PAs who process and track claim reimbursements on their behalf,” Dionne-Charest said.
While cost in terms of money may not be a large concern for HNWs, brokers should be aware that other types of cost are a major consideration.
Cash rich – time poor
But although wealthy, and therefore potentially cash rich, many HNWs are time poor, Wood points out: “Many are time poor and possibly travel a lot for business and they may need to satisfy visa requirements.
“Following the pandemic and with people now able to work remotely from anywhere in the world many have property abroad and will split their time between homes.
“We have also seen a shift in the market where HNW individuals explore international healthcare as they want richer benefits that a UK domestic plan cannot offer. They often want to be able to access specialist care directly without seeing a GP first.
“They require an adviser who understands their needs fully (not just a broking exercise on price) with a concierge service that holds their hands throughout the policy year.
“HNW clients want peace of mind that whatever happens they have excellent cover that will respond quickly and often want cover for pre-existing conditions and maternity cover is also popular.”
Access to an extensive network
Thomas agrees, saying: “Many HNWs are tech-savvy, seeking simplified digital experiences and solutions that align with their busy schedules and frequent travel.
“For instance, they may demand access to online medical consultations for convenient and faster healthcare management.
“Access to an extensive network of high-quality medical facilities is another priority for this group. They want the flexibility to choose doctors and medical institutions that align with their specific healthcare requirements and travel plans.
“In summary, high net worth individuals value bespoke, tech-enabled services, dedicated account management to deliver high quality service and access to a broad network of medical facilities to meet their evolving needs and preferences,” he said.
Concierge-style service
One of the main requirements for HNW customers is the ability for their adviser to offer a tailored, concierge-style service. Off-the-shelf type products are not going to cut it.
Carruthers said: “High net worth individuals are willing to pay a premium for an insurance that provides a concierge-style approach to managing their healthcare requirements, from having an extensive global cashless network, appointment booking services and dedicated customer care.
“Additionally, it’s expected that the typical benefit limits that are associated with more modest insurance policies are removed.
“Benefits such as physiotherapy, alternative therapy, mental health support and even dental, these are covered in full up to the policy limit.
“Of course, having access to care wherever they are in the world is a prerequisite, as often HNW individuals travel frequently.”
Points of differentiation
As a requirement, concierge services do not really create a point of differentiation for brokers, as according to Wood: “All International providers offer richer benefits than a domestic plan and some offer a real concierge service.
“They can access specialists that are the best in their field anywhere within their area of cover. A GP referral is not often required, which helps those that are time poor and chronic conditions can often be covered.
“More people are now interested in maternity cover along with the preventative benefits such as health assessments.
“Evacuation and repatriation benefits are also important for peace of mind.
So how else do brokers go about differentiating their offering to this market?
For Lockton, its all about offering greater service.
Carruthers said: “At Lockton, we provide all our clients with access to a 24/7 claims support line; however, for VIP marker clients, we extend that interaction to dedicated account managers, who are always on hand to support their needs.
“Like with all our clients, HNWs want to be supported, want to feel important as a client and want to get the best consultative advice.”
And April too tries to differentiate itself on its level of personal service, including using WhatsApp.
Thomas said: “Our offering must emphasise personalised care and should exceed client expectations.
“In our experience, it is all about finding the right balance between technology, the personal touch and service.
“High net worth individuals often seek comprehensive worldwide cover, as well as easy and quick communications with their insurance provider.
“This could include various communication methods, such as WhatsApp, for example.”
What changes can ensure a happy and protected customer?
According to Wood: “No two customers have the same set of circumstances or requirements. Our first objective with any customer is to establish objectives – are they looking for something that will mitigate certain specific exposures, or do they want the best of the best.”
Dionne-Charest agrees, saying: “Many HNW individuals live in countries that have a robust public healthcare system that they don’t have to directly pay for.
“As a result, they are only looking for international cover outside of their home country should they want to be treated elsewhere where expertise is higher or where waiting times are shorter.”