Upcoming Round Table: International Private Medical Insurance for High-Net-Worth Individuals
- Written by: iPMI Global
This exclusive invite only round table will focus on international private medical insurance (iPMI), specifically tailored for high-net-worth individuals (HNWIs) and expatriates.
The round table with IPMI market leaders will define the HNW market, discuss the necessity and challenges of insuring this demographic, and explore whether standard IPMI plans meet their needs.The RT will focus on bespoke and high-end plans with extensive coverage and concierge services. The RT will also explore market trends, regional adoption, and future developments.
Key Themes and Important Ideas/Facts:
- Growth of the HNWI Market:
Based on the Cap Gemini World Wealth Report 2024, globally, high-net-worth individuals (HNWIs) reached unprecedented numbers and wealth levels.
Specifically, in 2023, the global HNWI population rose by 5.1%. The report indicates that the global HNWI population in 2023 was 22.8 million. This surpasses the 2021 high of 22.5 million.
HNWI population growth by region in 2023:
- North America posted the most robust recovery, with a 7.1% expansion in HNWI population.
- Asia-Pacific experienced a 4.8% rise in HNWI population.
- Europe saw a more modest growth of 4.0% in HNWI population.
- Latin America had a 2.7% increase in HNWI population.
- The Middle East experienced a 2.1% growth in HNWI population.
- Africa was the only region where the HNWI population fell by 0.1%.
The report also provides the HNWI population in millions for different years and regions. For example, in 2023:
- North America: 7.9 million
- Asia-Pacific: 7.4 million
- Europe: 5.8 million
- Latin America: 0.2 million
- Middle East: 0.9 million
- Africa: 0.6 million
These numbers total 22.8 million, consistent with the overall global figure.
- Defining a High Net Worth Individual (HNWI):
There is no single, universal definition. Traditionally, it's bench marked at US$1 million in financial assets, but this is seen as a potentially simplistic and Western-centric view.
Factors like income, age, and cost of living in a specific location can influence the definition. For younger individuals, income might be a better indicator, while for older individuals, assets are more relevant.
Some providers define HNWIs in the IPMI context as individuals who are prepared to fund their own private medical health treatment without necessarily reverting to an insurance product.
Another perspective focuses on individuals seeking a very specific or bespoke insurance solution where the premium is not the key consideration.
- Why HNWIs Need IPMI Despite Affordability:
Cost is not the only factor. HNWIs often prioritize "the avoidance of risk and predictability.
The certainty of having access to high-quality healthcare protection whenever and wherever they need it is crucial.
IPMI offers more than just payment for treatment; it includes pre-trip planning guidance, support, second opinions, and emergency evacuation.
- Suitability of Traditional Mass Market IPMI Plans:
The consensus is that traditional mass-market plans may not fully meet the needs of HNWIs due to their specific demands for flexibility, comprehensive coverage, and high-level service.
HNWIs often lead globally mobile lives, making single-country insurance policies inadequate. They want a policy that will work for them wherever in the world they happen to be.
They may require the ability to pass on administrative tasks like claim filing to someone else, which needs to be accommodated while respecting data protection.
- Tailored IPMI Solutions for HNWIs:
Providers are increasingly offering modular products with higher levels of core cover and optional benefits to cater to the specific needs of HNWIs.
Some insurers offer exclusive, invitation-only which provides unlimited coverage and concierge-type services (e.g., limousine service, childcare during appointments).
- Specific Benefits Valued by HNWIs:
- Higher annual maximums on claims.
- Comprehensive cover, including outpatient, inpatient, and often dental and vision.
- Optional modules for preventative checks, screenings, mental health support (counselling, bereavement therapy), and travel assistance.
- Access to country risk information and even physical extraction from hostile environments (depending on the plan).
- Local vs. Global IPMI Coverage:
HNWIs generally demand global IPMI coverage due to their frequent international travel for work and leisure, and potential ownership of properties in multiple countries.
Domestic plans typically do not offer the right standard of cover or the necessary flexibility for international travel.
- Onshore vs. Offshore Preferences:
Some clients appreciate the reassurance of dealing with providers based in well-regulated jurisdictions like London.
However, international companies also need local licenses to comply with regulations and support customers effectively in various regions.
- Local Challenges in Providing IPMI to HNWIs:
- Language support for local nationals who can afford international plans.
- Navigating varying regulatory and legal landscapes across different countries.
- Meeting the high expectations of HNWIs for service and support, especially when issues arise.
- Understanding local market dynamics and cultural nuances.
- Future Trends in the IPMI Market for HNWIs:
- Increased self-reliance in healthcare as populations age and healthcare costs rise.
- A growing need for plan providers to deeply understand their HNWI clients and their expectations for the best service and value.
- Demand for flexible products without excessive restrictions, allowing HNWIs to "travel" with their cover.
- Customer service will be paramount, requiring fast, efficient, and 24/7 accessible support.
- Digital technology will play a role in breaking down geographical barriers and providing online and phone access to features.
Conclusion
iPMI Global Analyst Christopher Knight concludes, “This is the iPMI Global round table to join if you are targeting the high-net-worth individual market. The HNWI segment represents a significant and growing opportunity within the IPMI market. However, their needs and expectations differ from those of the mass market. Providers must recognize the nuances of defining this group, understand their concerns about under insurance, and offer tailored, flexible, and high-service solutions that go beyond basic medical coverage. The future of IPMI for HNWIs will likely be characterized by increased personalisation, a focus on exceptional customer service, and the strategic use of technology to enhance accessibility and convenience.”
To apply for a seat at the table, write to ipmi[at]ipmimagazine.com
