We know that personalisation in insurance is key to customer engagement and retention, but is it enough? The truth is that hyper-personalisation is the future of customer experience in the health insurance world and beyond. By harnessing artificial intelligence (AI) and technology, international private medical insurance (IPMI) providers can gain invaluable insights about their customers and tailor and adapt their offerings in new and responsive ways. With such an array of different customer profiles, including health conditions, lifestyles and risk factors, this is not just useful; it’s vital. Providers can offer seamless digital interactions through AI-driven virtual assistance and offer convenient telemedicine services. They can help customers to proactively manage their help through wellness apps and predictive healthcare.

While customers benefit from the efficiency, accuracy and convenience afforded by these tools, they don’t expect it to come at the cost of the human touch. In fact, humanisation in hyper-personalisation is integral. Human interaction and the empathy, trust and emotional connection that come with it are crucial for a meaningful customer experience.

With vast potential comes great challenges

The applications of AI in IPMI are significant. It can streamline personalisation, underwriting and claims, provide insights to enhance fraud prevention and cost containment, facilitate wellness engagement, and assist insurers in balancing risk sustainability with targeted coverage and customer satisfaction. “AI and predictive analytics play a crucial role in managing cost containment against rising medical inflation globally.

These technologies enable insurers to analyse vast amounts of data to identify cost-saving opportunities and optimise resource allocation,” stated Romain Di Meglio, Regional CEO, APRIL International, Asia Pacific and the Middle East. “For example, AI can detect patterns in billing data, allowing for early identification of overcharges and potential fraud. Predictive analytics can forecast future medical costs based on historical data, enabling proactive measures to control medical expenses for our members.”

AI can analyse large swathes of customer data, looking at risk profiles, behaviours and preferences to deliver personalised policy recommendations. For insurers, this appears to be a no-brainer, as through personalised recommendations they can increase customer retention and drive growth. Indeed, one report found that insurers that use hyper-personalisation can increase revenue by an average of 10–15%. “Hyper-personalisation is transforming insurance, using AI, real-time data and behavioural insights to tailor coverage and services,” confirmed Jeroen Van de Velde, Chief Sales Officer, Foyer Global Health. “In IPMI, this means policies that adapt dynamically to health status, lifestyle, and location. The potential is vast, but so are the challenges.”

Hyper-personalisation hurdles

Indeed, data privacy and security risks, ethical concerns, regulatory challenges and cost concerns are just some of the hurdles facing the implementation of hyper-personalisation in health insurance. Van de Velde highlighted others: “Technology and cultural adoption gaps present a challenge. Many IPMI insurers still operate on legacy systems, making real-time personalisation difficult. Additionally, customers differ in their digital behaviour – some embrace AI-driven tools, while others prefer traditional, human-driven interactions,” he pointed out. “Another challenge is associated with global clientele and short policy life cycles. IPMI customers are highly mobile, staying with an insurer for just a few years. They come from diverse cultural backgrounds, with differing attitudes toward data privacy, digital tools and healthcare expectations, making scalable personalisation complex.”

ITIJ also spoke with Neil Raymond, Founder and CEO of Pacific Prime, who mentioned the issue of anti-selection: “This remains a key challenge, as tailoring policies too precisely can attract higher-risk individuals, leading to imbalanced risk pools. Striking the right balance between customisation and sustainability is critical.” Indeed, insurers need to ensure their pricing and risk models do not lead to excessive anti-selection.   

The customer experience paradox

The customer experience paradox is a challenge in health insurance and beyond whereby a fine balance must be achieved between automation and human interaction. AI is increasingly popular, and its applications seemingly limitless, but trust in AI among customers is wavering, with confidence in AI having dropped by 11% in the past year, according to Qualtrics.

“While meant to enhance engagement, hyper-personalisation can backfire if it confuses or overwhelms policyholders,” said Van de Velde. “Success lies in balancing automation with [the] human touch, ensuring solutions remain accessible, relevant and easy to use. Trust in insurance is fragile. If people feel like they’re just interacting with an algorithm, we’ve lost them. Automate where it helps, be human where it matters, and always give customers a choice. AI and people should work together to deliver a smarter, more compassionate insurance experience.”

While meant to enhance engagement, hyper-personalisation can backfire if it confuses or overwhelms policyholders

ITIJ asked Van de Velde to share his thoughts on how AI can be harnessed without compromising the human touch. “AI and data analytics are game changers in IPMI. They help us process claims faster, personalise policies and even predict health risks. But let’s be clear – health insurance isn’t just about automation. We’re dealing with people’s wellbeing, often in stressful and unfamiliar medical situations. That’s why it’s our job to ensure AI enhances the experience without stripping away the human touch. The key? Knowing where AI adds value and where human interaction is essential.”

So, which is which?

“AI makes sense when it comes to routine tasks like claims processing, policy admin, or 24/7 chatbot support,” underlined Van de Velde. “But a human touch is important for critical medical cases, complex claims and moments of distress where empathy and reassurance are key.”

Di Meglio agreed: “By automating routine tasks such as invoice processing and data entry, AI frees up human resources to focus on more complex and personalised aspects of healthcare. For example, AI can detect overcharges and potential billing discrepancies, providing actionable insights that inform effective cost-containment strategies. However, while AI delivers valuable efficiencies, the human element remains paramount.”

Striking a complex balance

Still, for IPMI providers, achieving this balance is a complex matter. “Our customers are globally mobile, come from different cultural backgrounds, and may not engage with digital tools the same way,” said Van de Velde. “Some expect self-service and AI-driven insights, while others need a human guiding them through their options, especially when facing a serious medical situation far from home. That’s why AI should support, not replace, our experts. It can flag urgent cases, recommend cost-saving solutions, or suggest the best hospitals; but a human should always step in for high-impact conversations.”

So, how can this balance be struck? The answer involves strategy and a continuous eye on empathetic customer interactions. “It’s about strategically leveraging AI to streamline processes and empower human teams,” explained Di Meglio. “By minimising manual data entry, our assistance teams are freed to concentrate on complex case management and, most importantly, on building rapport with our members. Our integrated AI system processes vast amounts of data daily, providing real-time insights that enable our assistance teams to offer proactive and personalised support. This efficiency gain translates directly into increased direct member interaction time, allowing our teams to spend more time understanding individual medical situations and providing tailored assistance, such as recommending medical providers with higher negotiated discounts or arranging transportation to medical facilities.”

Automation should handle routine processes, freeing human agents to focus on complex cases that require sensitivity and personalised support

Raymond agreed and pointed out the potential of training here. “Automation should handle routine processes, freeing human agents to focus on complex cases that require sensitivity and personalised support. Investing in training and AI-driven sentiment analysis can further enhance empathetic interactions,” he stated. This can be an effective way to bridge the gap between automation and human empathy.

Van de Velde also highlighted the importance of training. “Teams should be trained to be empathetic and efficient,” he said. “Customer service shouldn’t just be about processing requests quickly; it should be about understanding the customer’s emotions, frustrations, and needs. Investing in training, soft skills and cultural awareness is just as important as investing in AI.”

The bottom line is that recognition is needed that although AI is an invaluable tool, it should support, not replace, human decision-making. “The final call, especially in sensitive cases, should come from a trained professional who understands context, emotion and nuance,” said Van de Velde.

The future of hyper-personalised IPMI

Hyper-personalisation represents an important strategy for maximising customer satisfaction, and the market is growing: it’s expected to reach US$74.82 billion by 2033, according to The Brainy Insights. ITIJ asked Raymond what future trends he anticipates. “Dynamic, real-time coverage based on individual behaviour and location, wearable-integrated health policies and AI-driven risk assessments will shape the future,” he said. “Customers will expect seamless, on-demand policies that adapt to their needs instantly.”

And with advancements in AI and tech, with seemingly limitless potential applications, why shouldn’t customers expect this? This uptick in AI comes alongside changing lifestyle patterns that necessitate flexibility, as Van de Velde articulated: “The way people travel, work and seek healthcare is changing, and insurance needs to keep up. In IPMI, where customers are globally mobile and expect flexibility, personalisation will be at the heart of future offerings. The future of travel and health insurance is about making coverage more adaptable, seamless and proactive. Customers will expect insurance to fit into their lives effortlessly, anticipate their needs, and provide real value beyond just claims reimbursement. Those who embrace this shift will lead the industry forward.”

This uptick in AI comes alongside changing lifestyle patterns that necessitate flexibility

Di Meglio agreed that there was increasing demand for convenient and accessible healthcare. “There is a growing need for services like 24/7 teleconsultations, doctor callbacks and access to second medical opinion services. Telehealth allows members to receive these services remotely, which is particularly beneficial for those who may not have immediate access to healthcare facilities. Additionally, the ability to direct clients to the most appropriate medical provider based on their diagnosis, supported by AI, will enhance the quality of care. Offering the option for doctors to visit clients at home, rather than requiring them to travel to a clinic, is also more cost-effective and convenient. These trends are expected to continue expanding, providing more flexible and timely healthcare solutions,” he explained. 

As IPMI providers harness the power of hyper-personalisation, they must tread a fine line between the use of AI and all the benefits it yields, and the human touch, with its inherent empathy and connection. “Hyper-personalisation is the future,” concluded Van de Velde, “but, in IPMI, delivering it requires more than just technology – it demands flexibility, cultural awareness and a strategic balance between automation and human insight. Those who get it right will set new industry standards.”