How to make insurance payments borderless

Not only are there more high-net-worth individuals (HNWIs) in the world than ever before – 22.8 million people, globally – but they hold a staggering level of wealth, with one report estimating it to be US$86.8 trillion (Capgemini). Backed by this wealth, HNWIs have the freedom to travel across the globe. Some are taking multiple short trips, some are taking extended trips visiting multiple countries, and others are relocating, either temporarily or permanently. One report by Henley & Partners estimates that in 2024, 128,000 millionaires are expected to relocate worldwide, against a backdrop of geopolitical tensions, economic uncertainty, and social upheaval. Another concludes that the primary drivers for this are a desire for “an enhanced quality of life, better education for their children, enhanced healthcare options, and tax optimization opportunities” (World Citizenship Report 2024, CS Global Partners).

These trends are contributing to growth in the international private medical insurance (IPMI) sector, creating demand for benefit-rich, curated products that provide access to a wide range of medical treatments that can differ depending on where they are in the world. Meeting the needs of these customers is complex and personalised, and involves deep partnerships across the distribution channel. But there is one thing that every provider can focus on improving that has benefits across that ecosystem.

Premium payment options

The point of premium payment is an often overlooked element in building a good customer experience (CX). It impacts purchase and renewal because it is often the point at which CX breaks down – 45% of customers say that if a payment is declined, they won’t try it again, leading them to switch providers (Checkout.com).

Had the provider been
able to take payment in the
customer’s preferred way,
the renewal would have been
confirmed without a problem
or delay

Say an HNWI wants to pay their IPMI renewal premium of around $10,000 usingtheir American Express card in sterling. While they can use their Amex card, their provider only accepts payment in euros or US dollars. For a high-value payment like that, the point of payment needs to be very forgettable. When the payment options offered don’t suit the customer, it leads to frustration, which leads them to complain to their broker, who now has to play some role in resolving this.

Had the provider been able to take payment in the customer’s preferred way, the renewal would have been confirmed without a problem or delay. It not only improves the customer relationship – but also those critical partnerships within the distribution channel.

Localising payments

This example is all too common. International customers often want to purchase IPMI policies using their home currency. To make purchase and renewal as easy as possible, the payment process also needs to be simple and seamless. Offering localised payments – allowing customers to use their preferred payment methods and to pay in the currency of their choice – will remove key barriers to purchase and renewal, deliver an exceptional CX and drive loyalty and retention.

The effective use of
technology, to automate and
streamline operations, can
remove complexity, deliver
great CX and drive revenue

Localising the payment also removes another common complaint: absorbing fees from currency exchange and transaction fees, which can add as much as 6% to the cost of the premium. Cross-border USD, GBP and EUR card payments are the most expensive form of payment for insurers too. Localising payments removes expensive credit card processing fees for insurers, which, given the sector processes trillions of dollars’ worth of international health insurance premium payments each year, could potentially deliver billions of dollars in savings.

Global insurance is inherently complex, with customer health needs and insurance coverage varying as much as their reasons for living abroad, but there are areas where the effective use of technology, to automate and streamline operations, can remove complexity, deliver great CX and drive revenue. Payment is one such area; one bad payment can easily impact the whole channel, creating a ripple effect that is hard to control, jeopardising a customer’s coverage and satisfaction, broker commission payments, and future revenue.

By removing exposure to fluctuating foreign exchange (FX) rates and high transaction fees, reducing payment failures and disruptions in coverage, and streamlining back-office processes, a global payment partner like Flywire transforms the efficiency of insurers while improving the overall customer experience to drive loyalty and growth.