Recession-busting outlook for 2009 expat insurance

Increased demand for protection products and moves towards compulsion will fuel sales of expat PMI and protection plans.

International expatriate insurance specialist William Russell is predicting a positive outlook for intermediaries advising on international private medical insurance (PMI) and expat protection plans in 2009 despite the global economic downturn.

In particular demand for protection products, such as expatriate life insurance and income protection products is growing as many expatriates switch their focus from investment to protection following global stock market corrections.

William Russell believes the scope for market growth and increased penetration of international PMI remains considerable. Demand is being driven by greater consumption of healthcare and the increased use of direct billing is enabling expats to access care more easily and with increased frequency.

The continuing moves in many jurisdictions towards making international PMI compulsory is also driving demand. Dubai is expected to make international PMI compulsory for expats in 2009 and in Malaysia, expats entering on the Malaysia My Second Home (MM2H) programme are obliged to have international PMI cover before a visa is granted.

James Cooper, Sales Director, William Russell Limited says:

“The hot spots for sales of international PMI are Dubai and Indonesia although demand is strong in virtually all regions. The fear of global recession has made many expatriates and their advisers focus more on protection products than investments and we are seeing strong growth in demand for income protection plans as well as life insurance and international private medical insurance.

“While it is likely that some international businesses with expatriate employees will rationalise their operations, the market is huge and unlike domestic PMI provision, which has become commoditised, the scope for market growth and increased product penetration remains considerable.

“In a market where many advisers are seeing falls in commission income from investment sales the international protection market offers a recession-busting ray of sunshine. PMI, life insurance and income protection products give advisers a positive story to take to their clients in difficult times and they also offer valuable source of initial commission and a reliable renewal income stream.”