When the Covid lockdowns ended more than four years ago, workers emerged into a new world where working from home out of necessity became working from home by choice.
This gave those working remotely an opportunity to work from anywhere provided they can connect to the internet.
“For people who can work from home, there is nothing stopping them from working anywhere in the world,” says Rhys Schofield, a previously UK-based protection adviser for Peak Mortgages and Protection, who now works remotely from South Africa.
Indeed, Schofield is one of around 165,000 Brits who worked remotely from other countries last year, according to consultancy Public First. And they are part of a 40 million-strong digital nomad global workforce, recruitment specialist FMC estimates.
The firm predicts there could be 60 million digital nomads globally in the next four years.
Covid has been a catalyst with the number of such workers tripling since before the pandemic, says Bupa Global strategy, product and proposition director Marcelo Mangueira.
And with more people moving across borders to live and work in other countries, often temporarily, they need international private medical insurance (IPMI) cover which allows them to access different healthcare systems while meeting increasingly technical visa requirements.
Escape the country
Tax, lifestyle, a lower cost-of-living, better weather, seeking new experiences and escaping political situations are driving digital workers to move across borders.
“Everyone wants to escape their home country,” says Chris Hughes, founder of Health Well Solutions. “The Americans want to escape Trump; the Brits want to escape the Labour government and the taxes.”
Improved communications have made this “feasible”, says Dr Mads Wedell-Wedellsborg, a lecturer in international business and strategy at Henley Business School.
“It is not like in the old days when you had to send a letter home to keep in contact with your parents,” he adds.
So instead of traditional backpacking, technological advances and changing working practices mean people can earn money while travelling.
A different model
For Joe Thomas, managing director of April International UK, the rise of remote working is driving demand for IPMI from people who do not fit the traditional expat model.
“This shift is driving demand for health insurance that offers flexibility, continuity of care and access to healthcare wherever life takes them, rather than a policy that’s designed to cover a single country or region,” he says.
And what digital nomads want from their medical cover depends on their age and how wealthy they are.
A 25-year-old technology sector employee, for example, may only want something that will appease their visa application and cover high risks.
“All a nomad wants is simplicity and easy access to a doctor – they are not interested in mental health cover,“ says Kirill Alba, founder of Albatross Healthcare.
Digital nomads tend to head to warmer climates where the cost of living is lower, such as Portugal, Spain, Mexico and Thailand.
War in the Middle East has, understandably, seen fewer remote workers move to once popular locations, such as Dubai, but there does not appear to have been a mass exodus yet.
“In the Middle East we are seeing more internal switching of provider, rather than new [customers],” says Jodi Thomas, global head of retail, health and benefits at Allianz Partners.
“It will be interesting to see how long this war goes on for and what the long-term impact will be [on the IPMI market],” she adds.
Portability and digital innovation
So how are providers adapting their offering to meet the needs of this growing demographic?
Several medical insurers have specifically looked at how they can meet the needs of digital nomads, such as transferability and portability of plans to cover new locations.
This can help to eliminate the need to go through new waiting periods or having to repeat medical underwriting.
Meanwhile, the huge increase in people using digital health services since the pandemic has also driven innovation.
Tech-savvy digital nomads who travel frequently need healthcare to be flexible and accessible.
They often need support navigating unfamiliar systems, from understanding how local healthcare works to finding trusted medical providers.
Adviser service
This demand for more tailored and personal service is important for intermediaries to recognise as well, as Health Well’s Hughes explains.
The firm does not just arrange medical cover but also has a concierge service to help clients navigate local GP systems.
“It is not just about the insurance,” Hughes says.
“People want service. They want to live in Marbella or the Algarve and know where to go for GP services.”
When it comes to these value-added services, he adds that consumers want to know what they are receiving on top of the insurance if, for example, they pay £900 when an accident and emergency product costs £800.
This could be what wins business in this market going forward as insurers and brokers seek to differentiate themselves.
“I know a lot of doctors pretty much everywhere,” Albatross Healthcare’s Alba says.
“From that perspective, we help with claims. We don’t hold their hands, but we sort out the paperwork. That is what differentiates us.
“For me it is not about the insurance; it is about the team around it,” he adds.
Allianz Partners’ Jodi Thomas echoes the sentiment that when going to different countries there is a 99% certainty the health system is going to be different.
“How do you get access? When do you get access? How do you claim? How do you buy? What is covered?” she says.
“Navigating the health system in your new country is super stressful.
“The service support that goes with that is important,” she adds.
Watches and rings
Mangueira points out that a typical digital nomad is aged between 25 and 45 and is unlikely to suffer from chronic conditions or need acute care, such as for cancer.
“How do you show value to a customer who will not necessarily access healthcare in the traditional way,” he adds.
Perhaps a focus on prevention could be key. Younger people tend to be more engaged with their health and take ownership of it, Mangueira notes.
“In the past,” he adds, “people would have to visit their doctor to understand their health. Nowadays, thanks to watches and rings, we have more data than our doctor.
“An increased need for preventative pathways coming from these younger cohorts will come through,” Mangueira says.
New innovations
Continuity of care for global nomads and expat families is critical and access to medical records can be one vital stumbling block.
Privawell co-founder Ilona Wright highlights that people living abroad need to be ready for when they need care.
“A challenge is not only to have the right access to care, but to arrive prepared,” she adds.
Its portal stores and organises an individual or family’s private medical records and produces a one-page summary of a person’s health to allow doctors to assess their medical history.
“The patient has all their information, so they do not have to rely on their memory,” she adds.
However, other local problems can arise for globally mobile populations navigating healthcare systems, even for those with IPMI cover.
One could be that the doctor you need may not be on call for the duration of your stay.
“Relocating to Cyprus for the taxes sounds amazing,” Albatross Healthcare’s Alba says.
“But in Cyprus, specialists fly in for a couple of days and then fly back to the mainland.
“Irrelevant of the type of policy you have, doctors not being available is the biggest issue they have,” he adds.
Opportunities
However more people appear headed to the digital nomad lifestyle, Henley Business School’s Wedell-Wedellsborg believes.
“If you look at trends, over the next five to 10 years the number of digital nomads will double in the sense that these opportunities are too good to pass up on,” he says.
“More people are working in remote jobs. They might as well go where they get experiences.”
And a consistent, easy to access, service-focused medical insurance policy that covers them for emergencies and their daily healthcare needs will be a must.