In identifying the key trends shaping the future of the international health insurance industry, it’simportant to first discuss the past.

I have spent more than 20 years in the insurance industry,leading international sales teams, developing strategicrelationships with insurance producers, and managing revenue growthopportunities.

During this time, one overarching trend has become clear: Amajor global event — whether it is a pandemic, terrorist attack ornatural disaster — coupled with the ensuingfear of the unknown, often increases consumers’ awareness ofinternational health insurance products.

This is not a revelation, but a mere fact. When something badhappens, the risks become clearer to international travelers, andthey’re more aware of their need for insurance.

This historic tendency, coupled with key emerging trends, willcontinue to shape the international health insurance industry forthe next five years and beyond. Take a deeper look to prepare for afuture of change.

More people are traveling and livinginternationally

The insatiable appetite to travel, work and live internationallydoes not falter, despite worldwide risks.

In fact, the World Tourism Organization predicts there will bemore than 1.8 billion annual international tourists by2030.

Not only are more people traveling internationally, they’re alsoventuring farther afield to corners of the globe that were onceinaccessible. “Off the beaten path” has taken on new meaning forsome travelers who embark on adventure trips to disconnect fromtechnology and trek in remote areas of the world.

Read: 5 ACA facts for expatriates

On the other end of the spectrum, business travel continues anupward trend too, with spending predicted to reach $1.6 trillion in2020 — up from $1.2 trillion in 2015. Long-term expatriateassignments also remain steady, despite ongoing difficulties facingthe global economy.

As international tourist and expatriate numbers rise, so toowill the number of people who need protection while they’re awayfrom home.

Travel medical insurance products are specially designed to meetthe needs of vacationers and business executives taking ashort-term international trip or multiple international tripsthroughout the year.

For expats, long-term international health insurance plansensure they receive worldwide, continuous medical coverage, nomatter where they’re located.

A heightened sense of vulnerability

As in the past, travelers and expats continue to face globalrisks when they’re away from home. The threats of pandemics,terrorist attacks and natural disasters remain.

Swine flu, Ebola, Zika, dengue and yellow fever outbreaks andmore have heightened concerns for international travelers andexpats visiting or living in affected areas.

The prevalence of terrorist attacks “close to home” has alsointroduced new fears. Paris, Brussels, Nice, Normandy and — mostrecently — London have all fell victim to dangerous terroristattacks in the past two years.

Additionally, natural disasters still pose significant threatsto visitors. Last year was unofficially deemed the “year of theearthquake,” with high-magnitude quakes striking in Taiwan, Italy,New Zealand, Japan, Indonesia and dozens of other locationsworldwide.

These dangers and more continue to shape the need forinternational health insurance.

Shifts in the global health care landscape

Consumers who travel, work or live internationally without theproper coverage leave themselves vulnerable to paying highout-of-pocket expenses if they fall ill or are involved in anaccident while they’re away from home.

Costs for different medical treatments can be steep and varydrastically by country. For example, treatment for a heart attackin Cancun could cost $21,300 USD compared to $8,500 USD inSingapore. If a traveler or expat falls ill with pneumonia inBeijing, treatment could cost $94,500 USD, but in Austria it couldcost $25,000 USD, according to charges our company hasreceived.

Additionally, as health care costs continue to riseyear-over-year, out-of-pocket medical expenses are becomingfurther out of reach for many travelers and expats, increasing thedemand for coverage that shifts some of the burden from consumer toinsurance provider.

The high costs of medical care and emergency medical evacuationscan make it very difficult for sick travelers to arrange to receivethe level of medical care they need while they’re away fromhome.

Depending on how far the person needs to be transported andwhere they’re located, the cost of an emergency medical evacuationcan be anywhere from $20,000 to $170,000 USD. Uninsured travelers,or those who have a plan that will not cover the cost of anevacuation at the time of service (i.e., a reimbursement policy),can find themselves appealing to friends and family to help coverthe expense.

They also risk predatory business practices from local airambulance providers who we have seen inflate the charge for an airambulance by 300 percent or more.

International health insurance mandatory for entry tosome countries

The rising costs of medical treatment, combined with unhealthy lifestyles and aging populations inmany parts of the world, have encouraged an increasing number ofgovernments worldwide to require or consider requiringinternational health insurance for non-nationals.

For example, those traveling to the U.S.on a J1 or J2 visa arerequired to have medical coverage that meets regulatory standardsfor the full length of their program.

Applicants for Schengen visas must prove that they have travelmedical insurance to cover any expenses which might arise inconnection with repatriation for medical reasons, urgent medicalattention and/or emergency hospital treatment or death, duringtheir stay.

Visitors to Cuba must also have proof of travel medicalinsurance upon entry.

As financial pressures grow on regional health care systems,mandatory health insurance is becoming an increasingly attractiveoption for governments across the globe.

Consumer demographics and expectations areevolving

Not only are we seeing an influx in international tourists andexpats, but we’re also seeing a broadening of demographics inassociation with these populations. In other words, people aretraveling to or living in more locations around the world for anincreasing number of reasons – whether to retire, do mission work,explore, study, teach, or vacation.

With this broadening of demographics, the industry faces new andhighly sophisticated consumers who each have their own uniqueneeds.

Millennials also pose distinct challenges for the internationalhealth insurance industry. As one of the largest generations inhistory, Millennials are poised to disrupt the status quo of theindustry, which will now be forced to rethink the way many of itsproducts and services are structured and sold.

Compared to previous generations, millennials’ expectations aremore sophisticated and complex as a result of their affinity forconvenience, digital connectedness and on-demand access toinformation. Not surprisingly, the integration of technology in thepurchase path will be key, and an “always-on,” 24/7 support teamwill not only be important, but vital.

In the coming years, producers will prove even more essential inreaching this vast population of consumers. However, those who comeout on top will be ready to face a future of change, and preparedto adjust to the needs of the global market.