High-net worth (HNW) and ultra-high-net worth (UHNW) individuals are increasingly globally mobile and in need of international private medical insurance (IPMI) to support their moves.
Henley & Partners managing partner Stuart Wakeling explained the firm, which specialises in residence and citizenship planning for wealthy people, was seeing soaring demand in investment migration programmes around the world.
Speaking at Health & Protection’s IPMI Summit, Wakeling (pictured) highlighted that growth in the market over the last 10 years had been substantial.
“Go back 10 years to 2016 and you can see that 64,000 millionaires chose to go and live in another country,” he said.
That number dropped during Covid, but has since increased again, more than doubling in 2024 to 134,000 millionaires moving to new countries, and this year the firm predicts it is likely to be even higher.
There is a crucial role for IPMI as Wakeling said: “A couple of these investment migration programmes require the person to have a significant level of private healthcare in order to be accepted to the country in question.”
He noted that such individuals “are not necessarily reliant on a nation’s healthcare, but they are all very desirous of what IPMI brokers offer – so it’s a significant part.”
$22bn industry
The Investment Migration Council estimates the investment migration sector as a $22bn a year industry, with about 100 programmes across the globe.
“We offer most of them, and 90% of the programmes are in high income countries, with 30 programmes attracting the biggest share of applicants,” Wakeling continued.
“People come to us because they require another residency or citizenship. The motivation behind that can differ significantly.
“For example, clients from Africa are often looking for a stronger passport, while British people are looking for EU residencies to claw back their EU status.”
Origins and destinations
The top country for attracting HNW individuals last year was the UAE, with the vast majority going to Dubai, Wakeling said.
When it came to net outflows of millionaires, the country with the biggest net loss was China, followed by the UK, where the net millionaires lost has been steadily increasing over the last three years.
In 2022 the net HNWI loss was 1,800, that increased to 3,500 in 2023 and hit around 10,800 in 2024.
“It is a staggering figure,” Wakeling said, before noting the UK now is a very big push factor.
“We have made ourselves via tax rises and increased crime a less attractive destination for people,” he continued.
“The continued ascendance of rival financial hubs such as Dubai, Paris, Geneva, Frankfurt, Amsterdam, and Milan has eroded London’s status as the region’s top financial centre. Brexit has arguably had an exacerbating effect on this.
“I served more British people than ever before last year. Five years ago we were typically serving Nigerians, Ghanaians, Russians and Chinese, but the biggest uptake in my services last year was the UK and the US.
“They are all looking for another residency or citizenship.”
The top destinations for attracting UK millionaires are the US and the UAE. Large numbers are also moving into Greece, Italy, Switzerland, Malta, Portugal, Austria and the Caribbean.
No pull-factor
In the UK there is another issue – millionaires are no longer entering the country after the closure of the UK Tier 1 Investor Visa programme, which at its height was responsible for around 1,000 applications a year.
Wakeling said: “The disappointing thing about the UK is that we can’t have a vehicle to attract.
“Three years ago we had an investment migration programme that allowed someone to invest two million in the UK economy – they would spend some time here, they would buy houses, they’d create businesses and jobs.
“They would spend significant money here as the programme dictated that they had to spend time in the UK.
“But that particular avenue has been closed off and there is no sign of this government making any changes to bring back such a programme.
“So not only are we pushing people out of the UK, there is no pull factor either – which is a crying shame in my opinion.”
Since the IPMI Summit, reports suggest the UK government is considering options for a new visa for high-net worth foreign investors.