IPMI & International Healthcare Predictions for 2013
Offering affordable but comprehensive IPMI policies will continue to be the main predicament facing insurers and employee benefit consultants over the forthcoming year, according to Jelf Employee Benefits. The challenge arises due to a number of factors including a broadening of ‘mainstream’ destinations, a rise in demand for additional benefits and an increase in the complexity of local markets.
Sarah Dennis, international healthcare director, Jelf Employee Benefits said: “Unlike other areas of employee benefits which tend to become more streamlined and efficient with time, international healthcare becomes ever more intricate and the need to seek specialist advice a necessity.
“Trading overseas was previously the reserve of larger, well-established businesses but international markets look increasingly appealing to other smaller UK businesses who are feeling the financial strain at home. Therefore a larger number of companies are sending staff to further-flung locations to capitalise on faster-growing economies.”
Jelf Employee Benefits takes a look ahead to 2013:
1. Driven by demand, providers will start to look at new countries to enter such as Azerbaijan, Kazakhstan, BRIC (Brazil, Russia, India & China), Australia, South America & African regions. Whilst the more developed of these nations will broadly mimic policies in existing developed countries, other will pose a real challenge for the insurer and require sophisticated solutions.
2. Will insurers then want to keep up with the demands of local regulators and requirements as they unearth the intricacies of each market? This may mean we see consolidation in the market, as some insurers may decide to limit their offering to particular geographies whilst only a few genuine world-wide specialists will materialise.
3. The desire to explore new markets will be counterbalanced with the financial consequences of doing so. The cost of sending employees abroad continues to rise in terms of both travel & relocation costs as well as the IPMI policy itself: the latter because the cost of treatments, hospital bills and doctors’ fees are increasing worldwide. It remains to be seen whether today’s approach to IPMI is sustainable in the long term.
4. UK PMI policies have become increasingly sophisticated over recent years with ancillary benefits such as EAPs, OH and pre-health screening all becoming the norm. These add-ons will increasingly be offered with overseas policies as SME to mid-corporate employees want to offer their workers a complete package – equivalent to that of their UK-based staff.
Sarah Dennis continued: “In 2013, employers need to be educated to understand what they are buying and whether they really need it. In one location an all-singing, all-dancing policy may be required but in another, local healthcare may be applicable. Either way, in the IPMI arena, the employers’ duty of care burden is becoming increasingly heavy.”