The pandemic has focused expats’ minds on health and wellbeing as never before and when considering moving abroad to take on an assignment, it is now one of an expat’s key factors.
As a result, ensuring private medical cover is in place for expats is just as important as ever, as confidence in local health provision varies depending on where they are being sent.
But there are a widening range of demands being put on advisers and insurers as globally mobile people and their employers seek more support to prevent assignments failing.
Allianz research carried out with MRBI across the globe during the pandemic showed the pursuit of a better quality of life, health and wellbeing was the priority for the majority of people.
Nearly three quarters (73%) said the health and wellbeing of their family was a crucial consideration in deciding whether to stay abroad or move back home, while nearly two-thirds (65%) said living abroad has had a positive impact on their family’s overall health.
“Health and wellbeing is a key factor in the decision making process for people considering a move abroad for work,” Allianz Partners Health tells Health & Protection.
“This has become even more important in recent years, as a result of Covid-19, which has led to a shift in values for many in the expat community.”
The importance of a good work-life balance has come into sharp focus as people adapted to remote and hybrid working models, with this cited as another key influencing factor for 70% of expats in terms of deciding whether to stay abroad or move home.
Greater demands to ensure successful relocation
But Allianz added it is also seeing a shift in terms of the life plans of expats.
“In the past, expat assignments tended to be highly paid and were often short-term,” the insurer.
“But our research has shown this community is now taking a more long-term view of life abroad. Access to support is crucial for those navigating a move, with or without family.”
And so services to support mental health including loneliness or struggles to adjust are growing in importance, as is help settling into new homes and guidance on cultural differences.
Michelle Bishop, EU team leader, multinational benefits and HR consulting practice at Gallagher, agrees adding mental health is among the biggest issues for expats right now.
“Moving to an unfamiliar location, without friends, family, with a different language and culture can be very unsettling,” Bishop says.
“It’s why pre-trip planning, buddy support systems and such are a fundamental part of the assignment management process.
“An employee assistance programme (EAP) should not be a standalone feature of a group’s mental wellbeing strategy.”
Core and growth markets
In terms of what drives expats to certain locations, Bishop says these destinations tend to be determined by core and growth markets.
She added that the top recipient countries for expats are India, China, Mexico, the Philippines and Nigeria, while the countries with the highest share of expats in terms of total population are in the UAE and Singapore.
On the flipside Bishop adds areas of conflict have obviously seen reductions in assignments.
“There is less about healthcare but more about safety,” she said.
“Again the least popular locations tend to be viewed as such not for healthcare but for their economies, for example currency fluctuations, a lack of job opportunities or working hours – so places like Turkey, Cyprus and Brazil.
“Typically the healthcare issues reflect the economy where there may be poor access to care and where it is accessible, the quality of care received.”
This is especially true in Sub-Sahara Africa, according to Nadia Jafar, chief executive officer of Bluestone of London, who explains in this region locals and expats would not rely on local healthcare systems.
“They would rely on their private health insurance. So this region and in particular in Africa.
“This is unlike other regions such as the Middle East and the UAE, Japan, Canada or Singapore – in all those areas, if any members are sent there, you know they have got good quality healthcare systems, they’re clean and the technology is robust.”
European destinations of choice
But for expats from Africa, Portugal is a popular destination, Jafar says.
“I have African clients where a popular destination for them is Portugal,” she continues.
“In some African regions there are similarities in the culture for example and they feel connected with the culture so they will send employees there.
“Portugal for example has got a good healthcare system so that’s another reason people relocate. It’s nice, it’s clean, there’s opportunity and there are some tax incentives as well for some of the employees that go there.”.
But within Europe Germany remains the most popular destination for expats, Jafar says, partly because of its robust healthcare system and, depending on the industry, great work opportunities.
But it is uncertain whether Germany will continue to hold on to this title in the future as it is facing competition from a close neighbour due to the trend of expats increasingly seeking to launch their own business during the pandemic.
“Youngsters for example that want to start new businesses are keen to go and work in countries that support them” Jafar adds.
“The emerging one that I know of would be the Netherlands. Generally, young people want to go there, the young ones, the start-ups because they’re really supportive of new start-ups.”
