Right now the future of the domestic health insurance industry is headline news and remains unpredictable. Insurance agents, and a good portion of the American public, are attentive to the discussions on Capital Hill, and await the direction in which the industry will travel if a plan is ironed out.
For insurance agents, it is always important to look for new opportunities and new markets -- the "next big thing." This is even more significant in light of the uncertainty of U.S. health care mandates, and the current state of the economy.
Not that long ago, mini-meds, consumer-driven health plans and HSAs were new and exciting. Many agents jumped on these innovative products and subsequently prospered. With these products now offered so widely, their uniqueness has been substantially reduced. Today, in order to help boost your business, it's necessary to think outside the box again and find untapped markets. These markets currently exist with products and with carriers already in place, but they are open for new agents due to the relatively low number of agents exploiting the sector.
Numerous opportunities exist within employer-based, international group medical insurance. It is an excellent market for you to explore. Beyond the relatively limited competition compared with the broader insurance market, the international market allows you to diversify your client base, increase your commissions, and spread your income globally.
Opportunity
Business is global -- and that includes the businesses right in your neighborhood. Companies with operations abroad are no longer limited to just the traditional, large multinational companies. Employers of all sizes and from all nations are now making their presence felt. With the abundance of free trade between countries and large markets like China opening up, the international insurance sector is exploding.
While the actual number of U.S. organizations with operations abroad is unknown, the U.S. Census Bureau estimates that there are at least 4 million U.S. citizens working abroad. When you add the local nationals and third country nationals that work for these firms, the market potential is enormous, and so is the potential to increase your income.
Despite the growing number of organizations with the need for international insurance solutions, the agent market has been relatively slow to act. According to the 2008 Health Insurance Study conducted by Agent Media among licensed health agents nationwide, the category of International Health Plans is at the bottom of the kinds of health insurance most commonly sold (less than 1%). Additionally, the study reports that only a fraction of licensed agents sell domestic group medical insurance -- and the number of U.S. agents who sell international group medical insurance is an even smaller fraction. There simply isn't much competition among agents in this market, which is quite rare in today's competitive sales environment.
With the lack of attention given to a growing market in mind, you can draw the following conclusions:
o Agents don't realize the market exists.
o Agents have heard of international medical insurance, but don't understand the need for it and/or don't give it any thought.
o Agents are intimidated by the market and unsure how to market effectively.
o Agents know that there is a need for it, but are unaware of the solution.
Bottom line -- everyone is trading with everyone and the opportunities are plentiful. Your opportunities are not limited to your city or state. Your potential, when partnered with the right international plan administrator, is unlimited. The key is finding the right partner that can guide and educate you while you grow more comfortable in the international marketplace. It's easier than you think.
What to look for in a partner
First as an agent, you should look for a financially strong carrier that is dedicated to the agent market -- one that will support you and your goals rather than compete with you. Education is essential. Look to a company with a broad-based team that can provide you with international market insight, business support and resources you need to succeed.
In the international market, having access to diverse products is of great magnitude. Look to a company with an extensive product line that allows you to easily assist your clients and prospects in choosing the proper plan to meet their needs.
Be sure that it offers products with coverage for both U.S. and non-U.S. organizations, and provides coverage to all employees -- expatriates, local nationals and third country nationals. In addition to international employee benefits, the company should have several programs that provide you the opportunity to reach several different targets in the international market -- travel, expatriate, missionary, marine and trip cancellation insurance. What's equally important is to ensure that there are the proper sales tools, incentive programs and online capabilities in place for you to easily earn strong commissions.
Second, as support for your clients, look for a company that provides flexible plan designs and gives your clients outstanding enrollment and administrative support. It should also provide plans with affordable premiums with low deductibles and no coinsurance. It should be able to insure all dependents regardless of location, and offer the freedom for your clients to choose their own provider.
Finding a partner that provides 24-hour secure online access to manage accounts, a multilingual staff to ease the burden of communicating in a second language, and access to highly qualified emergency medical services will not only enable you to help an employer invest in the success of its international operations, but in its employees, too.
In today's challenging economy and with U.S. health care reform in debate, there is no better time to think outside the box. Expand your vision. Tap into the opportunity and revenue that's all around you within the international group market.
James D. Smith is the group marketing director of international employee benefit sales for International Medical Group Inc. (IMG), which has specialized in providing medical insurance products to groups, individuals and families in over 170 countries since 1990. Mr. Smith has been in the insurance industry for more than 20 years, is certified in Global Benefits Management and is responsible for sales and marketing of IMG's employer-based, international group medical program. IMG currently offers products through brokers, consultants and insurance carriers worldwide. He can be reached at james.smith@imglobal.com or 317-655-9741.
