Rising Demand for International Health Insurance Among U.S. Expats
A recent Harris Poll conducted on behalf of GeoBlue and International Citizens Insurance (ICI) highlights the growing significance of international health insurance as four in ten Americans have contemplated moving out of the U.S. within the next two years. The survey reveals that 31% of potential expatriates cite concerns about obtaining reliable and affordable healthcare coverage abroad as a primary barrier to relocating, surpassing other concerns such as work and social life. This finding underscores the critical role international health insurance plays in supporting Americans considering expatriation.
Among current expatriates, 82% report that access to healthcare coverage worldwide provides significant peace of mind, easing the challenges associated with navigating foreign healthcare systems. Additionally, 76% feel more confident managing medical needs abroad when protected by international health insurance. Routine medical care and unexpected medical events frequently involve the use of such coverage, with nearly half and 57% of expatriates respectively confirming utilization.
The demand for international health insurance is expected to increase in tandem with broader migration trends and the rise of the digital nomad workforce. The 2024 State of Independence Report notes a 147% growth since 2019 in Americans identifying as digital nomads, underscoring evolving mobility patterns that emphasize remote work and international living. Despite this, 36% of expatriates surveyed did not have international health insurance upon moving, often relying mistakenly on their domestic health plans, which typically offer limited or no coverage abroad.
Industry leaders caution against this reliance on U.S. domestic plans while living overseas, highlighting the financial and logistical risks involved. GeoBlue's VP of individual sales emphasizes that international health insurance is vital not only for financial protection but also for ensuring access to necessary medical care, reinforcing its importance in the expatriation process.
The survey involved 428 participants, including a mix of current and former expatriates and prospective movers, providing insights into the growing market for tailored international health coverage. GeoBlue, backed by 15 Blue Cross Blue Shield companies and Bupa, and International Citizens Insurance both offer specialized insurance solutions targeted at global citizens and expatriates, emphasizing comprehensive coverage and global provider networks.
This evolving market segment's relevance to insurers includes shaping product offerings, marketing strategies, and regulatory compliance considerations related to cross-border healthcare coverage. Insurers focusing on international health plans must address affordability and ease of access, as these factors are pivotal for customers planning extended periods abroad. The findings also underscore the need for clear education around the limitations of domestic health insurance when used internationally.