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

I have spent more than 20 years in the insurance industry, leading international sales teams, developing strategic relationships with insurance producers, and managing revenue growth opportunities.

During this time, one overarching trend has become clear: A major global event — whether it is a pandemic, terrorist attack or natural disaster — coupled with the ensuing fear of the unknown, often increases consumers’ awareness of international health insurance products.

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

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

More people are traveling and living internationally

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

In fact, the World Tourism Organization predicts there will be more than 1.8 billion annual international tourists by 2030.

Not only are more people traveling internationally, they’re also venturing farther afield to corners of the globe that were once inaccessible. “Off the beaten path” has taken on new meaning for some travelers who embark on adventure trips to disconnect from technology and trek in remote areas of the world.

Read: 5 ACA facts for expatriates

On the other end of the spectrum, business travel continues an upward trend too, with spending predicted to reach $1.6 trillion in 2020 — up from $1.2 trillion in 2015. Long-term expatriate assignments also remain steady, despite ongoing difficulties facing the global economy.

As international tourist and expatriate numbers rise, so too will the number of people who need protection while they’re away from home.

Travel medical insurance products are specially designed to meet the needs of vacationers and business executives taking a short-term international trip or multiple international trips throughout the year.

For expats, long-term international health insurance plans ensure they receive worldwide, continuous medical coverage, no matter where they’re located.

A heightened sense of vulnerability

As in the past, travelers and expats continue to face global risks 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 and more have heightened concerns for international travelers and expats visiting or living in affected areas.

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

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

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

Shifts in the global health care landscape

Consumers who travel, work or live internationally without the proper coverage leave themselves vulnerable to paying high out-of-pocket expenses if they fall ill or are involved in an accident while they’re away from home.

Costs for different medical treatments can be steep and vary drastically by country. For example, treatment for a heart attack in Cancun could cost $21,300 USD compared to $8,500 USD in Singapore. If a traveler or expat falls ill with pneumonia in Beijing, treatment could cost $94,500 USD, but in Austria it could cost $25,000 USD, according to charges our company has received.

Additionally, as health care costs continue to rise year-over-year, out-of-pocket medical expenses are becoming further out of reach for many travelers and expats, increasing the demand for coverage that shifts some of the burden from consumer to insurance provider.

The high costs of medical care and emergency medical evacuations can make it very difficult for sick travelers to arrange to receive the level of medical care they need while they’re away from home.

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

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

International health insurance mandatory for entry to some countries

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

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

Applicants for Schengen visas must prove that they have travel medical insurance to cover any expenses which might arise in connection with repatriation for medical reasons, urgent medical attention and/or emergency hospital treatment or death, during their stay.

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

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

Consumer demographics and expectations are evolving

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

With this broadening of demographics, the industry faces new and highly sophisticated consumers who each have their own unique needs.

Millennials also pose distinct challenges for the international health insurance industry. As one of the largest generations in history, Millennials are poised to disrupt the status quo of the industry, which will now be forced to rethink the way many of its products and services are structured and sold.

Compared to previous generations, millennials’ expectations are more sophisticated and complex as a result of their affinity for convenience, digital connectedness and on-demand access to information. Not surprisingly, the integration of technology in the purchase path will be key, and an “always-on,” 24/7 support team will not only be important, but vital.

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

Instant Insights /

Trends shaping the international health insurance industry

More From HR Executive

Related Stories

Recommended For You