Flexibility appears to be the key watchword when it comes to relocating employees at the start of this new year.
This extends to employees on assignment requiring greater work/life balance to mitigate the mental health challenges of working far from home.
However, clients also want flexible cover that can be applied to multiple countries, while reliable internet is a key concern for workers due to a rise in remote working.
And they are also increasingly seeking to localise relocation assignments rather than spend lots of money on an international placement.
Though a further spanner in the works is that employer and employee needs can differ greatly.
But while there may be anti nomad sentiment driven by negative press headlines across the globe, the rise of the digital nomad only looks set to continue into 2025 and beyond.
Greater demand for mental health services
“One trend we have noticed from customers is greater demand relating to mental wellness benefits as many customers navigate the challenges of relocating to new countries, Kevin Melton, global head of IPMI at IMG, tells Health & Protection.
“Highlighting these benefits is particularly important for the family members of employees covered under a group company health insurance plan,” he adds.
It is a trend that UnitedHealthcare has also picked up on. “There is a higher demand for mental health support, digital tools for accessing healthcare, and resources to help expatriates manage stress and adjust to new cultures,” the company explains. “This trend is driven by a greater focus on mental health and wellbeing.”
Meeting the needs of remote workers
But UnitedHealthcare also notes growing demand for personalised, flexible, and holistic relocation services to meet individual needs driven by the rise of remote work and evolving family dynamics.
And it further points to an increased emphasis on pre-assignment preparation where employees require cultural, language, and safety training, as well as access to healthcare before and during their overseas assignments.
Growing demand for online support
The firm told Health & Protection it expects the demand for relocation support and risk management is to evolve further, while the rise of remote work will increase the need for employees to find locations with reliable internet and suitable workspaces.
Reliable internet is particularly important due to increased demand for online support processes and 24/7 real-time support for customers, Melton adds.
“This relates to the increased popularity of telehealth consultations, where patients can speak with medical experts 24/7 to help diagnose, treat, and prescribe medication for many nonemergent medical issues via phone or online video consultations,” he continues.
Demand differs
But designing solutions for relocating workers is never easy as employer and employee demands on relocation differ greatly.
“That will always be the case,” Michelle Bishop, global practice leader, multinational benefits and mobility at Gallagher, says.
“Organisations are investigating ways to limit their financial exposure without compromising their employees’ health and safety.
“But many are now realising that the expatriate lifestyle is sometimes packaged with a pay cut, and so some employees will look to maintain their financial wellbeing through alternative channels.”
“We must also consider how generational gaps and differing assignee needs have influenced how organisation support their employees,” Bishop continues.
“As a result, core flex policies and business partnering has evolved at a rapid rate. And so it goes that global mobility teams now find themselves under more time constraints when it comes to education, reducing cost demands, delivering RPI, and providing tailored support to employees.
“The evolving nature of employee relocation also presents a range of challenges for consistent management.
“From navigating complex compliance requirements and embracing new relocation strategies to factoring in the growing influence of ESG considerations, the way forward is rarely straightforward.”
Multiple country cover
Another trend top of mind this new year is that far more people are looking for insurance cover suitable for residence in multiple countries, according to William Cooper, marketing director at William Russell.
“In fact, we recently changed the copy on the country of residence field on our online quote tool,” Cooper says. “It now asks the country where the customer spends most of the year, rather than the country where they reside.
“A significant minority of customers need health insurance for visa reasons.
“A proportion of these customers are simply looking to satisfy immigration requirements and intend to cancel their insurance policy once the visa is issued. We don’t have a suitable insurance product to satisfy this demand.”
Localising relocation assignments
Adam Harding, divisional director at Howden, points to a noticeable trend toward localising relocation assignments to align with local policies, rather than opting for the high-cost international relocations that were more common in the past.
“This shift often depends on the seniority of the employee being relocated; for senior roles, companies are more willing to invest time and resources to ensure a successful relocation or to provide global benefits packages,”
Harding explains, adding several factors appear to be influencing this shift.
“Limited resources within HR teams and the high cost of outsourced relocation support have made localised solutions more appealing,” Harding continues.
“Additionally, individuals now have greater access to information through apps, the internet, and freely available resources.
“This accessibility allows them to manage many aspects of relocation themselves, reducing the reliance on external support compared to previous years.”
But Harding adds the primary demand among clients right now is for benchmarking insight.
“Understanding what industry peers are offering in terms of benefits,” he continues. “Employers want to remain competitive while avoiding unnecessary expenditure.
“As the world becomes increasingly interconnected, employees are seeking greater personal choice in their relocation packages.
“However, companies face challenges in offering fully bespoke packages due to time and budget constraints.”
Growing trend
But the trend towards assignments being localised to home countries shows no signs of abating, Harding says.
“We anticipate a growing trend of assignments being localised to home countries, with a focus on key benefits such as private medical insurance—specifically international policies that offer advantages like pre-existing condition coverage—and competitive salaries,” he continues.
“These enable employees to make their own informed choices about aspects like housing and schools for their children.
“While access to information empowers individuals to manage some aspects of relocation independently, certain benefits will still require the economies of scale provided by group offerings.
“Employers will remain pivotal in delivering these, particularly in areas like healthcare, where favourable terms typically depend on collective arrangements.”
Rise of the digital nomad
Ultimately, while there may be rising anti nomad sentiment, the increase in workers who can work anywhere seeking to relocate, only looks set to continue.
“Digital nomad visas are encouraging people to relocate,” Cooper explains.
“There are a number of push factors too, particularly disillusionment with life in North America or Western Europe.
“Employers of Record (EORs) are a relatively recent phenomenon on this scale, and we’re seeing more and more people taking advantage of their services.
“There has been plenty of anti-nomad sentiment in local and international media, but it’s a trend we expect to continue as Gen Z and millennials continue displacing older generations.”
Melton agrees, adding: “According to the International Organization for Migration, employment is one of the key motivators for moving abroad, with international mobile workers representing 62% of the world’s mobile citizen population.
“And we anticipate that demand is only going to increase, as employees continue to move overseas for job opportunities and career advancement.”
Continued demand for digitised solutions
Providing his own take of what the sector can expect in 2025, Joe Thomas, managing director of April International UK, tells Health & Protection he expects demand to continue to rise for digitised solutions which simplify healthcare access, such as streamlined claims processing and appointment booking systems this year.
“Customers will still prioritise sustainable premium costs, balancing affordability with comprehensive coverage,” Thomas continues.
“The management of chronic diseases is becoming increasingly important as expats, particularly within an ageing population, seek comprehensive cover that emphasises proactive, day-to-day care alongside treatment for acute episodes.
“Younger expats will drive demand for flexible, tech-enabled and highly personalised plans that fit mobile lifestyles and non-traditional career paths.
“These trends highlight the need for accessible, adaptable, and financially sustainable health insurance.”
Mobility nirvana
Bishop, meanwhile, predicts financial wellbeing will likely become a dominant theme in 2025.
“There is likely to be a growing emphasis on ISP/IPP, but we do anticipate these developments to address both short-term and long-term needs effectively,” Bishop says.
“Many organisations are now striving to achieve their ‘mobility nirvana’, whether it’s by developing a centre of excellence or leveraging outsourced providers, freeing up time for organisations to hone in on their business needs and employee experience,” she adds.
“In essence, mobility leaders must remain adaptable and rely on technology to drive change and deliver administrative tasks in the coming years.”