International Medical International Health Insurance: Moving into the Mainstream
by Brendan Sharkey

Savvy agents and brokers have taken note of how the relentless pace of globalization is expanding the horizons of health insurance products. The economies of Asia, Europe, North America, and South America are integrating steadily. U.S. citizens are going abroad to work, play, and study in ever-increasing numbers. Latest figures from the Dept. of Commerce indicate that international travel is growing 11% a year. These “globalists” have awakened to the need for quality health insurance products that can cover them anywhere in the world.

Some of the largest health insurance producers in the U.S. are carving out a share of the market for individual major medical products that feature global benefits. Long relegated to the periphery of the market, policies tailored to international travel and lifestyles are moving into the mainstream as important specialty products. Expectations among buyers are rising. They are accustomed to being covered by robust health benefit programs. Regulators, too, can be expected to ratchet up their scrutiny and standards.

It’s time to start evaluating alternatives and solutions, especially in states, such as California and Florida, that are feeling the greatest effect of globalization.

Regulators have historically encountered international health plans primarily in the form of property and casualty surplus lines products. Few insurers have filed admitted products to serve this segment, preferring to avoid the cost of filing state by state. They rely, instead, on specialty brokers to do the legwork to find and bind the coverage under the rules that apply to any surplus lines policy. Regulators have relied on specialty brokers to issue international health plans in compliance with regulations over state surplus lines. Brokers serving a broader market are often unaware of these requirements and can fail to comply when selling an international plan.

By selling admitted international health insurance products, brokers can turn the regulatory apparatus to their advantage and give their clients added protection. Brokers can avoid spending the time and effort to comply with a usual surplus lines practice: taking affidavits from customers or rejection letters from carriers as evidence that admitted products are not available to meet their needs. Selling admitted products also gives brokers broader coverage under their errors and omissions insurance policies. In addition, insurers filing admitted products are often domiciled in the U.S. and report financial solvency in terms that are more familiar and transparent to regulators and insurance professionals.

Brokers pass along these advantages to clients who benefit from a more streamlined and comfortable buying experience because they are working with a broker who is confident in the products they sell. Customers also benefit from the consumer-friendly state regulations that include the following:
• Mandated coverage and benefit levels.
• Policy wording that meets the plain English standard.
• The right to redress and arbitration through regulatory channels.
With all these advantages, brokers should take a hard look at all the international health products in their marketplace to make sure they are offering the most value, reliability, and convenience to their customers.

Protection and service are the broker’s key to building a reputation and a client base, and that’s especially true in this important market segment, which is moving into the mainstream. Take a hard look at international health insurance as an important growth opportunity and arm yourself with the best products you can find. You can succeed in this specialty market without encountering the doubts and burdens that come with surplus lines rules and regulations. Your customers, new and established, will thank you for it.
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Brendan Sharkey is director of Individual Travel Programs, HTH Worldwide. Brendan is frequently called upon to discuss the travel insurance landscape for media outlets including CNBC Morning Television, The Wall Street Journal, USA Today, Consumer Reports Magazine, The Washington Post, and The Los Angeles Times. o contact Brendan Sharkey: email bsharkey@hthworldwide.com or call 610-254-8707 HTH Worldwide helps travelers gain access to quality healthcare services all around the globe.