As the expatriate population in Asia continues to grow, healthcare systems and insurance providers across the region are adapting to meet the needs of this diverse demographic. From regulatory updates to tailored health insurance plans, significant changes to the healthcare landscape in Asia have been made to accommodate expats, ensuring they have access to comprehensive health insurance coverage and quality healthcare.

Staying on top of regulations

Regulatory changes have significant implications for insurance providers and the healthcare industry. 

Romain Di Meglio, Chief Executive Officer of APRIL International for the Asia-Pacific region, stated that “changes in regulations significantly influence the structure of international private medical insurance (IPMI) policies. These mandates ensure policies comply with local regulations and offer sufficient customer protection.” 

He highlighted the importance of local insurance partnerships: “Against this backdrop, APRIL International collaborates with local insurers to ensure its offerings are locally compliant and available to its customers.”

Adapting to meet customer needs and expectations

Keeping up with the evolution of technology and the fast pace of today’s modern world can be challenging. For insurers striving to meet the demands of increasingly digital-dependent customers with diverse needs, embracing technology is paramount. We asked the experts how customer expectations are evolving and shaping policy benefits. 

Elena Donina Glukhman, Project Manager of AP Companies Global Solutions, told us: “Customer expectations are evolving rapidly, driven by demographic shifts, technological advancements, and changing healthcare preferences.”

She added: “Providing the highest level of customer care and support requires innovation, flexibility, and customer centricity.”

Di Meglio agreed that technology is at the forefront: “In today’s digital world, clients expect to manage their health insurance online.” He highlighted the importance of advancements such as innovative digital tools that enhance the customer experience and “attract the new generation”.

Additionally, he said: “Customers are increasingly looking for customised healthcare solutions, paying only for what they  need.” He noted the launch of geographical coverage options  by APRIL International to cater to the “increasingly mobile population and customers from emerging countries seeking international health coverage”.

“There are also emerging trends in terms of benefits,” he continued. “For instance, there may be a need for more preventive-screening benefits or mental health benefits.” He concluded: “Insurance providers need to adapt their plans to stay on par with their competitors.”

Telemedicine changing the landscape

Advancements in technology have made telemedicine a game-changing tool, improving healthcare accessibility and affordability. It allows expatriates in rural or isolated locations to connect with healthcare providers through teleconsultations and mobile apps, receiving medical advice and prescriptions without visiting a clinic.

Di Meglio explained how telemedicine is revolutionising policy engagement: “Telemedicine offers the convenience of remote healthcare services, making it easier for customers to access healthcare. This is particularly beneficial for those living in remote areas or those with mobility issues. It also means that customers can access healthcare services outside of traditional office hours, providing greater flexibility.”

For insurers striving to meet the demands of increasingly digital-dependent customers with diverse needs, embracing technology is paramount

Glukhman agreed: “Telemedicine services offer affordable consultations, saving time and providing peace of mind to members.”

Di Meglio continued: “Eventually, it also helps reduce the burden on primary care physicians and contain costs through greater efficiency.” He said it also gives the opportunity to offer extended mental health support. 

“Telemedicine can also lead to cost savings for both the insurance company and the policyholder,” he added. “It can reduce the need for in-person visits, which are often more costly than remote consultations. Further, it allows for earlier diagnosis and treatment, leading to better health outcomes and lower overall healthcare costs.”

Impact of rising medical costs on policy benefits 

Glukhman said: “The current trend underscores a significant challenge in aligning rising medical costs with policy benefits. Factors such as advancements in medical technology, increased demand for healthcare services, and inflation contribute to the escalation of medical expenses. Consequently, insurance companies face mounting pressure to maintain policy benefits at adequate and sustainable levels.”

However, she noted: “At AP Companies, we’ve observed a new trend: the introduction of cost-effective benefits that not only address healthcare needs but also potentially save costs.”

Di Meglio agreed that inflation is challenging the industry. “In recent years,” he said, “the rising healthcare costs have challenged the sustainability of health insurance policy benefits. Widespread inflation across the healthcare sector has increased the underlying expenses of maintaining and delivering health insurance coverage. This is combined with a worrying increase in the frequency of both inpatient and outpatient visits.

Telemedicine can lead to cost savings for both the insurance company and the policyholder

 “To maintain a sustainable level of quality healthcare coverage and access to customers, typically, insurance companies used to adjust their premium rates. We believe that more solutions are available. They all include creating more awareness, empowering patients with clearer information for them to make decisions, and creating the right incentives.” 

Overcoming the financial challenges 

“Insurance companies can tackle this challenge through various strategies,” said Glukhman. “Firstly, they can implement cost-containment measures such as negotiating lower rates with healthcare providers, promoting preventive care, and implementing utilisation management programmes.”

Di Meglio outlined the benefits of managing expenses through customised benefit plans. “To help combat this, more flexible and customisable benefit plan designs are also introduced for customers to manage their healthcare costs. 

“The traditional, one-size-fits-all approaches are becoming less viable due to the rapid increase in medical costs, as they may not cater to the varied needs and budgets of all. They may potentially be excluding some individuals from these solutions or not fully addressing their requirements in health insurance.”

He noted: “By providing better cost-control mechanisms and incentives, these innovative flexible plans can help address the imbalance between rising medical costs and the need for a comprehensive cover of policy benefits. Customers have increased flexibility to make smarter healthcare spending decisions through features such as optional benefit selections and cost-sharing options. These features allow them to tailor solutions to each family member, ensuring that every individual’s unique needs are met.

“As medical inflation continues to outpace wage growth,” he continued, “flexible benefit plans are becoming increasingly important for insurance companies seeking to balance affordability with financial stability. Giving customers more opportunities to actively participate in cost savings can help curb utilisation increases and better align policy benefits with underlying expenses over the long run. Overall, these kinds of innovative plan designs promote sustainability amidst ongoing healthcare spending growth challenges.”

Glukhman also emphasised the importance of involving the customer: “Enhancing transparency and communication with policyholders regarding coverage options, cost-sharing arrangements like copayments and deductibles can help manage expectations and ensure policy benefits meet evolving healthcare needs.” She said that “fostering transparency and clarity in policy management” is a key pillar at AP Companies. 
 

Widespread inflation across the healthcare sector has increased the underlying expenses of maintaining and delivering health insurance coverage

Di Meglio said the long-term solution for insurance companies involves “raising awareness and creating a better understanding of individual choices”. 

He pointed out: “Achieving this requires close collaboration with network healthcare providers. Through negotiated fee schedules and prior authorisation requirements, insurance companies can help ensure customers’ medical spending remains stable and predictable year over year.

“Additionally, offering value-added services that encourage more judicious use of healthcare can balance benefits with costs. For example, services such as Second Medical Opinion allow customers to verify treatment recommendations at no extra charge. This helps customers avoid unnecessary procedures, saving money for both the individual and the insurance company in the long run,” he concluded. 

Impact of rising medical costs on policy benefits 

Glukhman said: “The current trend underscores a significant challenge in aligning rising medical costs with policy benefits. Factors such as advancements in medical technology, increased demand for healthcare services, and inflation contribute to the escalation of medical expenses. Consequently, insurance companies face mounting pressure to maintain policy benefits at adequate and sustainable levels.”

However, she noted: “At AP Companies, we’ve observed a new trend: the introduction of cost-effective benefits that not only address healthcare needs but also potentially save costs.”

Di Meglio agreed that inflation is challenging the industry. “In recent years,” he said, “the rising healthcare costs have challenged the sustainability of health insurance policy benefits. Widespread inflation across the healthcare sector has increased the underlying expenses of maintaining and delivering health insurance coverage. This is combined with a worrying increase in the frequency of both inpatient and outpatient visits.

Telemedicine can lead to cost savings for both the insurance company and the policyholder

 “To maintain a sustainable level of quality healthcare coverage and access to customers, typically, insurance companies used to adjust their premium rates. We believe that more solutions are available. They all include creating more awareness, empowering patients with clearer information for them to make decisions, and creating the right incentives.” 

Overcoming the financial challenges 

“Insurance companies can tackle this challenge through various strategies,” said Glukhman. “Firstly, they can implement cost-containment measures such as negotiating lower rates with healthcare providers, promoting preventive care, and implementing utilisation management programmes.”

Di Meglio outlined the benefits of managing expenses through customised benefit plans. “To help combat this, more flexible and customisable benefit plan designs are also introduced for customers to manage their healthcare costs. 

“The traditional, one-size-fits-all approaches are becoming less viable due to the rapid increase in medical costs, as they may not cater to the varied needs and budgets of all. They may potentially be excluding some individuals from these solutions or not fully addressing their requirements in health insurance.”

He noted: “By providing better cost-control mechanisms and incentives, these innovative flexible plans can help address the imbalance between rising medical costs and the need for a comprehensive cover of policy benefits. Customers have increased flexibility to make smarter healthcare spending decisions through features such as optional benefit selections and cost-sharing options. These features allow them to tailor solutions to each family member, ensuring that every individual’s unique needs are met.

“As medical inflation continues to outpace wage growth,” he continued, “flexible benefit plans are becoming increasingly important for insurance companies seeking to balance affordability with financial stability. Giving customers more opportunities to actively participate in cost savings can help curb utilisation increases and better align policy benefits with underlying expenses over the long run. Overall, these kinds of innovative plan designs promote sustainability amidst ongoing healthcare spending growth challenges.”

Glukhman also emphasised the importance of involving the customer: “Enhancing transparency and communication with policyholders regarding coverage options, cost-sharing arrangements like copayments and deductibles can help manage expectations and ensure policy benefits meet evolving healthcare needs.” She said that “fostering transparency and clarity in policy management” is a key pillar at AP Companies. 
 

Widespread inflation across the healthcare sector has increased the underlying expenses of maintaining and delivering health insurance coverage

Di Meglio said the long-term solution for insurance companies involves “raising awareness and creating a better understanding of individual choices”. 

He pointed out: “Achieving this requires close collaboration with network healthcare providers. Through negotiated fee schedules and prior authorisation requirements, insurance companies can help ensure customers’ medical spending remains stable and predictable year over year.

“Additionally, offering value-added services that encourage more judicious use of healthcare can balance benefits with costs. For example, services such as Second Medical Opinion allow customers to verify treatment recommendations at no extra charge. This helps customers avoid unnecessary procedures, saving money for both the individual and the insurance company in the long run,” he concluded.