At a time of increased competition, it is vital to consider new income streams. Andy Seale explains what intermediaries need to think of when starting out in international private medical insurance.
Private medical insurance today is distributed in the UK through a large number of intermediaries and consultants, yet the burgeoning international private medical insurance (IPMI) sector has comparatively low numbers of specialised intermediaries.
The IPMI market is often perceived as more complex than domestic health insurance, which deters many intermediaries from entering this arena. However, while IPMI is specialised in nature, intermediaries looking to enter the market can obtain support and advice from international insurance providers.
Providers have a vast amount of knowledge and expertise that they are happy to pass on, minimising any added complexity or concerns that intermediaries may have.
While it can be difficult for intermediaries to gain a foothold in the UK domestic health insurance market, the IPMI sector is not only large enough to accommodate new intermediaries, but it is estimated within the industry to be growing year on year by more than 12%.
Healthcare policies have traditionally been restricted to a geographical area (usually one country). But with people becoming increasingly mobile, domestic cover often falls short of modern-day requirements.
Demand for IPMI, as opposed to domestic policies, is being driven largely by the globalisation of business, as large multinationals and small- to medium-sized companies continue to take advantage of opportunities overseas. In addition, business and lifestyle opportunities abroad also appeal to individuals, whether they are self employed or retired.
Continuous Evolution
The international health insurance market is continuously fine-tuning its products, adapting to changing regulatory requirements in different regions and adding new services to suit the changing needs of this competitive and dynamic sector. This is good news for companies and insured members.
There is also a high level of competition between companies when it comes to attracting and retaining skilled staff. Companies in a position to offer compelling benefit packages, of which health insurance is a key element, have a competitive advantage.
For employees, as well as individuals and their families living abroad, the quality of medical insurance cover becomes even more important. In an unfamiliar environment, people want to feel confident that they and their family will have easy access to adequate levels of healthcare, if and when required.
The niche nature of the IPMI market makes it possible for intermediaries to develop a name and reputation for themselves. Less competition than in the UK domestic insurance market combined with consistent growth makes the IPMI sector an attractive long-term prospect.
