ITIC MEA 2024 | Health insurance policy design in MEA
Laila Aljassmy and Dr Jermine Nabil Elkala examine the unique aspects of policies for expats in MEA, and consider what clients want and need
The ITIJ team have been reporting live from ITIC MEA in Cairo this week (April 2024) sharing the discussions that took place at the conference. Read all the reports here.
Laila Aljassmy, Founder and CEO, Health Beyond Borders, began her discussion by saying that medical tourism (MT) is a growing trend, and that over 10 million people worldwide cross international borders for better and cheaper care.
She said medical tourism and its insurance is a result of the globalisation of healthcare, and that consequently, “medical tourism no longer remains the choice of the under-insured or uninsured.”
Aljassmy said that according to estimates by McKinsey and Co., the rise of medical tourism has resulted in annual savings on health-related expenses of nearly US$20 billion. She said that this could be among the most significant factors that has led the insurance industry to offer products that specifically cater to medical tourists.
Aljassmy went on to say that most insurers balk at covering medical procedures performed overseas, but some are exploring the options. Patients travel to save money, as many elective procedures cost substantially less outside their home countries.
She said that the report published by McKinsey & Co. for the US stated that if insurers started providing medical travel insurance annually, around 500,000 to 700,000 Americans would be seeking treatment abroad.
Aljassmy said that overseas care can lead to price breaks of more than $10,000, not counting travel costs, for procedures like knee replacement surgery or heart bypasses, and that insurers or employers who provide their own insurance can save between 50% and 90% on major medical claims.
While employers or insurers reap much of the savings, Aljassmy added that these lower costs can be the difference between a manageable expense and a bank-breaker for patients with high-deductible plans.
She then said insurers are reluctant to send policyholders overseas because of concerns over credentialling claims, international accreditations, continuity of care and follow up.
Aljassmy finished by saying that to choose the right insurance company you must look at the:
- Insurer rating
- Coverage area
- Plan cost
- Medical benefits
- Eligibility
- Healthcare network.
Dr Jermine Nabil Elkala, Chief Medical Officer and Network Manager, MSH, started her talk by saying: “The Middle East, with its rapid development and industries, has become a hotspot for expatriates seeking career opportunities. This brings forth the crucial aspect of health insurance tailored for expats in the region.”
She said that MEA is a quite mature market (representing approx. US$1.5 billion) due to:
- The high number of inbound expatriates (approx. 23 million)
- Local regulations (obligation to take an insurance locally)
- Multiple IPMI insurers being very well positioned.
Dr Nabil went on to say that the Gulf region alone represents approx. US$1.2 billion, of which approx. US$800 million is in the United Arab Emirates, and that that the North Africa and Levant regions are less mature. She added that in the Gulf region, inbound expatriates represent 80% of the IPMI market (US$950 million) and that most policies are being purchased as part of a corporate plan.
She said that the Covid-19 pandemic has meant that people have had to reassess their priorities and put more importance on insurance cover.
She said business confidence in the region is reviving with the reopening of borders and easing of travel restraints, and that sizable infrastructure investment programmes will attract businesses to the region. She added there is also a growing population, largely comprising of young and working-class professionals, and that demand for insurance products will continue to grow.
Dr Nabil then briefly covered some of the key differentiators between policies, and said that expat health insurance policies in the Middle East may differ in how they treat pre-existing conditions, and saidflexible payment options can make managing finances more comfortable. Portability and renewability can also be distinguishing features.
She finished by saying there are some challenges, including that fact that the highly fragmented insurance industry in the Gulf Cooperation Council region has led to intensified competition among existing players, resulting in higher commissions and discounts on product offering and lower profitability.