With the ever-increasing volume of e-mail, escalation of cell phone use and personal digital assistants (PDAs), stress levels are on the rise. And so is the search for relief.
For many, that may be a family trip to a vacation hot spot to take in some sun and sand. But for others, a smaller group of individuals with at least $1 million in financial assets, it may be a four-day cruise on a chartered 100-foot yacht sipping fine champagne while enjoying Beluga caviar flown in directly from the Caspian Sea.
You may think that is pushing it, but in fact, the number of high-net-worth individuals has increased 6% over 2006, according to the 2008 World Wealth Report. As a result, luxury travel is booming and in several countries throughout the world, it is one of the best-performing sectors of the travel business.
As an insurance agent, you may have some clients that fit into this market. However, the number of potential clients is staggering. The challenge you may face is finding a company and a plan to deliver the global security that these people demand when they travel internationally. Frequently a typical domestic plan does not provide coverage once these travelers leave their home country. If it does, it likely offers limited benefits and inadequate services.
This is an emerging and relatively untapped market, and there is an abundance of opportunity. Before jumping in, there are several key factors to consider.
The High-Net-Worth Individual (HNWI)
Before you can deliver products to the people in this market, you need to have an understanding of who they are. The 2008 World Wealth Report estimated the population of HNWIs at 10.1 million worldwide with a cumulative net worth of $40.7 trillion -- a 9.4% gain from 2006. Additionally, their financial wealth is projected to reach $59.1 trillion by 2012, advancing at an annual growth rate of 7.7%.
Those are impressive statistics, but what is important for you to know is what those individuals look for in a product you can deliver. In a study conducted by the Luxury Institute, out of a sample of more than 500 HNWIs, superior quality and personal services landed at the top. However, one-third of consumers say that receiving quality and service is more difficult now than in the recent past. They also believe there is a lack of experts in their field. Therefore, agents who can adapt to meet the specific needs of these people will have a favorable advantage over their competition.
Total range of coverage
Travel is one of the top risks facing people with substantial wealth. Whether it is for business or pleasure, they travel frequently to exotic destinations around the world, and to regions that are less secure. They need international protection to cover them for any situation, and they often expect more than off-the-shelf insurance products.
For example, your client/prospect could be an oil company executive who lives in Saudi Arabia. He needs an enhanced benefits package that provides lifetime coverage while he is there and when his business takes him worldwide. He also wants the convenience of comprehensive medical, dental and vision benefits in one plan.
Perhaps he lives in the U.S., but travels abroad frequently throughout the year. He has an upcoming five-day meeting in Abu Dhabi. He needs a short-term plan that will protect him during his business trip, and each time he travels that year. If his family joins him, they need coverage, too. Or he could run several overseas operations and he is responsible for securing group coverage for his internationally assigned employees. He needs an employer-sponsored comprehensive group medical plan for his employees and their dependents, regardless of their country of assignment.
It may be that he is captivated with mission work and is taking time off to travel to South Africa with a group of missionaries to participate in international outreach. He and the group members need coverage sensitive to their international needs.
A high-ranking spending category for the HNWI is experimental travel or excursions. Therefore, your client/prospect could be planning a personal trip to Bolivia to take a course in high-altitude mountaineering. The course will cover topics such as glacier travel, ice/snow climbing techniques and rappelling. It will also allow him to attempt two or three peaks between 18,000 and 20,000 feet in the Bolivian Andes. He needs a product innovative enough to cover extreme sports activities.
Product innovation and resilience should not be overlooked. As an advisor to your client, you need to be able to offer him a total range of coverage that is flexible and can adapt to his particular circumstances.
Full-service solution
Now that various coverage needs have been established, you need to be able to provide your client with a full-service solution. As an agent, it is important that you are a trusted advisor for identifying risks and researching the market for the optimal solution. According to GlobalDirect Marketing's study, "A Guide to Affluent Consumer Behavior," these individuals want personal attention and connection with the provider of products or services they purchase. Therefore, you need to be a resource to them from the time they leave, during their trip and in the event of a claim.
Consider the types of obstacles the business executive outlined earlier may face during his various travels. At his arrival on his trip to Abu Dhabi, he realized he forgot to pack his insurance forms and ID card. He needs the ability to easily access his plan documents and manage routine areas of his account anytime, anywhere. The Internet offers the convenience your client looks for, so be sure you can provide him with secure, online service 24 hours a day.
During his trip, he develops a stomach virus. While this is a relatively routine occurrence, he still wants a U.S.-trained physician. The availability of an online, worldwide directory of providers is important so he can quickly and easily locate an experienced professional in his area.
While on his charity trip, he falls off the roof of the house they were building, resulting in a serious head injury. For this critical situation, it is imperative there are trusted resources available to rapidly coordinate his care.
His plan should provide emergency medical evacuation, direct billing and effortless claims management. If these services and benefits are not in place, the evacuation as well as all of the associated medical expenses may need to be paid out-of-pocket. With fees that could reach astronomical amounts, your client's net worth could take a significant hit.
By ensuring your client has access to top-notch services and the proper international benefits in place, you are ensuring he receives the prompt attention he demands and your relationship with him will benefit.
One call. One company.
Selecting the right company to administer these benefits and provide superior service may be the most important decision you make for your clients/prospects. The company you select should serve as the single source for every international medical coverage need.
Look for a company that has flexibility in its plan design and a diverse range of quality, innovative products to choose from. The company should offer products with concierge and emergency travel assistance services. Its ability to provide leading-edge products with comprehensive benefits is important.
Also look for an established company that has a proven track record of excellence. Research indicates that companies that deliver superior service are declining, so make sure the company has experts in their fields and credentialed service divisions. On-site clinical staff should be available to provide their expertise as well. It is essential that your clients know they can reach someone during a medical emergency 24 hours a day, despite time zone differences.
The company should have a strong Web presence, and you should be able to easily help your clients/prospects apply for coverage online. They should also be able to access their account information, download forms and locate providers in times of need.
By providing a total range of coverage, a full-service solution and working with an established company, you can tap into a substantial revenue stream. As the luxury travel industry continues to report growth, the opportunity to deliver quality international insurance products and services will, too.
Jeff Nasser is the senior vice president of international marketing for International Medical Group(R) Inc. (IMG(R)), which has been specializing in providing medical and related insurance products to individuals, families and groups in more than 170 countries since 1990. Nasser has been in the insurance industry for more than 25 years and oversees IMG's day-to-day marketing operations. IMG currently offers products through agents, brokers and insurance carriers worldwide.
