Country Specific Reports Now Show Expat Admitted Status

The country specific expatriate destination country reports, whenever possible and when the information is available, will show if an expatriate residing in the country will need to secure admitted insurance in order to stay in the country and keep the work visa.

Countries such as Saudi Arabia, Netherlands, and many others now require expatriates residing in the country to have health insurance with a local admitted insurance company or risk heavy taxes or being essentially "thrown out" of the country.

This seems to be the way of things to come.  In the past, it may have been enough for expatriates to demonstrate that they had a health insurance plan so as not to be a burden on the national health insurance scheme of the host country.  Now, in a measure that is more protectionist than anything else, expatriates are forced to take out host country insurance offered by an admitted carrier.

Kidnap and Ransom Insurance for Expatriates

McKinley International has teamed up with International Insurance and Investments LLC to offer the International Executive Security Monitor, the premier resource on the internet for information on Kidnap and Ransom Insurance and international executive security in general.

The site is informational in nature but McKinley International Risk Management can be contacted if kidnap and ransom insurance quotes are needed for executive travelers and expatriates living and working in high risk countries such as Haiti, Iraq, Colombia, Mexico, Philippines, Yemen, Afghanistan, Nigeria, etc.

The information at International Executive Security Monitor will be updated at least once a week in 2010.

Country Specific Expatriate Destinations Guide Now Completed

After a series of updates and revisions, the expatriate country by country guide is finally completed.  Here expatriates, and employers that send expatriates into these countries, can find out essential information about the expatriate assignment in each country including the following:

1. Whether the host country requires that the expatriate buy locally admitted insurance in order to remain in the country.
2. If the local host country healthcare system extends to cover local nationals outside of the host country.
3. The need for various insurance products in the country.  For example, kidnap and ransom insurance need ranks very high for Mexico, but very low for Australia.
4. The need for various international service products for expatriates in each country like cross cultural training and international EAP.
5. A description of the host country market for local healthcare.

The country guides for expatriates will be updated at least quarterly so the information is always timely.  If there is any urgent news that affects expatriate assignments in any one particular country, it will be updated in 48 hours.

Expatriate Country Destination Guide from McKinley International Risk Management

McKinley International Risk Management offers country specific expatriate destination overviews presenting important information on a country by country basis for expatriate health insurance, international workers compensation, international employee assistance programs, cross cultural training, and the need for other expat insurance on a country by country basis.

The work is being done now, and the country by country expat guides will be available on January 1, 2010.  Most of the information is being uploaded at this time.

In addition a quick overview is being build for each country page that will tell potential expatriates to that country how important each insurance or service offering is, in that country, from the need for foreign workers compensation in Saudi Arabia to the need for an international emergency security plan in Colombia.

Inpat Insurance and Expatriate Insurance for Foreign Nationals in the U.S.

Global employers should not treat foreign nationals coming into the United States on assignment the same as expatriates leaving the U.S. for insurance issues.  Here is an overview of the major areas why inpat insurance is a different animal and why foreign nationals coming to the U.S. need different treatment.

First, almost all foreign nationals needing insurance in the United States are coming from a country that has national health insurance in some form or another.  They just don't understand the medical insurance system in the U.S.  Medical plans offered to foreign nationals in the U.S. have to be very easy to understand.  If a form of managed care is used like an HMO, the specifics of our system need to be explained in detail.  A massive uncovered claim may fall back on the employer.

Also, these local nationals in the United States need to know that they may have very little or limited coverage if they leave the U.S. or return home for a period of time, and may be considered "out of network."

Other than the big one, medical, here is the rest of the list:

1. Auto insurance:  They should be told to apply for a State drivers license as soon as possible without delay.  You can't keep driving here with an international license and can't get insured properly.
2. Property insurance:  They need to understand where to get personal property insurance and more importantly, international liability insurance to protect their net worth in case of lawsuit.
3. Vacant Home Insurance:  Do they still have a house back in the home country that is unoccupied?
4. Life Insurance:  Is the U.S. 2 x salary standard adequate?
5. Disability insurance:  A personal plan may be necessary because the U.S. plan will not be able to pay foreign nationals LTD money if they return to their home country if disabled.

International Employee Benefits 7 Step Process

For any global employer with more than just a handful of expatriates and global business travelers, international employee benefits has to be a 6 step process in order for the organization to complete it's goals and remove risk and unfuned liability.

1. Know your exact international exposures exposures.  For example, many university HR managers tell us "we have no idea when professors from the college of business are travelling overseas."  This is completely unacceptable.  Do you really know where your people are and where they go?
2. Understand what home country benefits cover and what they do not.  There are 100 examples here.  If you are leaving people that spend time abroad under a U.S. medical plan, is it a PPO or an HMO.  Will treatment received overseas need to be an emergency before it's covered.  What about out of network issues?  What about non US. FDA approved drugs prescribe abroad?
3. What international insurance is required to fill gaps and liabillities?  Is an international medical insurance plan needed.  Will the U.S. LTD plan honor disability that occurrs abroad?  Again, there are 100 questions to ask.
4. What international insurance would be nice to offer for maximum employee retention, but not absolutely required.  A wish list for better times.  What is the rest of the industry offering?
5. What international service programs are needed, or would be nice to offer.  Two buckets.  For example, for expats working in Almaty Kazakhstan, an international medical evacuation plan is essential.
6. Work closely with the risk manager to avoid gaps and overlap.  In one organization we met a benefits manager that did NOT KNOW the risk manager!  I can assure you there was both overlap in coverage and gaps in coverage at this company. 
7. Document everything to both the employees and internally.  Do you have a good international expatriate handbook and when was the last time it was updated?

Insurance for Expatriates residing in Europe

What type of employee benefits package do you provide expatriates in Europe?  It depends on the makeup of the expatriate population, for example, if they are American expats working in Europe, Asian expatriates working in Europe, or inter-European expats or British expats.

There are some very strong international insurance companies that are based in the EU and the UK, so the decision would be, do we use an American international insurance company for expatriate insurance in Europe, or do we go with a local EU international insurer who may have better doctor and hospital relationships on the ground?

If the group is composed of American Expatriates needing healthcare in Europe, you most certainly will want to go with an American International Health Insurer because most would consider it necessary to offer U.S. compliant policy language to American expatriates working in Europe.  (for example offering COBRA continuation to expatriates as well as, HIPAA, ADEA, and other U.S. laws.  You will not find these provisions in European expatriate insurance policies.

If your group is composed primarialy of non-U.S. expatriates or TCN employees, there are some great companies in Europe that can provide group insurance in the EU.  For example, Allianz, AXA/PPP, Gouda, and BUPA, the largest provider of expatriate insurance in the world.

Expatriate Insurance in Japan

Expatriate stationed in Japan should make sure they have an international medical insurance plan, international dental plan, and Life and Disability insurance that will perform if the claim occurs inside Japan.  Many U.S. expatriates are left under U.S. (or in the case of TCN employees, home country) life and LTD insurance plans that would not be able to honor claims once the expatriate had take up permanent residence abroad in Japan.

Local nationals in Japan have a government managed and required health insurance scheme.  Employees of private companies must be covered under a Gov't managed HI plan or a Society managed HI plan in Japan.  Unemployed and self employed persons can be covered by the National Health Insurance System.

Although expats should not want to participate in the Japanese national insurance scheme they are required to pay into the system.  Although double coverage will ensure, there is just no way around the fact that an international health insurance plan is needed for expatriates in Japan.  

Expatraites will spend quite a bit of time out of Japan, and the Japanese system can do little or nothing in the U.S. or in EU hosptials.  What's more, if the expat becomes gravely ill, he or she will want to return home to seek care and not be "stuck" in Japan for years getting treatment in the Japanese system.

Expatriate Insurance Canada for Americans

American expatriates in particular don't think about international health insurance and expatriate issues when they take an expatriate assignment in Canada.  However, they really should take the same steps planning here as they would for an expatriate assigment to China.

First, you cannot keep your U.S. domestic health insurance carrier if you are residing full time in Canada.  By residing full time, in most cases we mean three months or more.  If you have permanently relocated and moved your family to Canada for an expat assignment you should very quickly secure an expatriate health insurance program and drop the U.S. coverage before it drops you. 

The problems with relying on a U.S. medical program while working in Canada are numerous and proper expatriate insuance in Canada means avoiding these U.S. plan problems:

1. Coverage can simply be denied because the U.S. insurer is unable to provide coverage for permanent residents of Canada.
2. Canadian hospitals may not use U.S. FDA approved drugs and these would be denied by a U.S. health plan.
3. Even if coverage continues coverage under a U.S. PPO or HMO plan for an expat in Canada, it may only pay for healthcare that is emergency in nature.  An American cannot choose elective care in Canada and may only find out after it's too late and the medical claim in Canada is denied.

An American should obtain the proper expatraite insurance in Canada for other reasons beyond the medical plan.  There can be similar problems with the U.S. life insurance plan for expatriates, and the U.S. long term disability plan for expatriates.  Dental and vision will have the same problems as the medical plan.  It's not like Iraq, obtaining the proper expatriate insurance plan in Canada is easy, and should be done the week before the assignment.

Expatriate insurance U.K.

Expatriate insurance United Kingdom is not the "easy as pie" cakewalk people think it is.  Yes,  there is no expatriate medical insurance carrier that will not provide expatriate medical insurance in the U.K. but it's worth looking at other lines of insurance for a change and not just focusing on international medical for a change.

Expatriates living in the U.K. may or may not be able to get adequate renters insurance in the U.K.  International property insurance may be easy to get for an American living in the United Kingdom, but International liability insurance may be very difficult and the expat may need to look at U.S. solutions to adequately protect from liability risk and lawsuit.

An expat living in the U.K. will be able to find international life insurance, however the policy will most likely only be good in the U.K. and cannot continue once the person has returned to the host country, and certainly will not continue if the expatriate is an American citizen and plans to return to the U.S.  It is possible for expatriates working in the United Kingdom to secure both life insurance and even LTD insurance in the U.S. although they are working in London.  The advantage of doing this lies in the fact that the coverage under an individual plan can be maintained once the expat returns to the United States.

Medical evacuation insurance in the U.K. is, for the most part, unnecessary because the "nearest appropriate facility" is always ground transportation and international life flight is unnecessary.

International Insurance Broker through McKinley International

This blog is sponsored and created by McKinley International Risk Management, an international insurance broker that works with employers who have international employees in the following situations:

1. U.S. expatriates working abroad
2. Non-U.S. expatriates also called Third Country Nationals
3. Local national hires / foreign national employees
4. International global business travelers
5. Inpats, foreign nationals residing in the U.S.

The following areas of expertise are offered to clients:

1. Expatriate medical insurance (expat health insurance)
2. Expatriate ancillary benefits such as life, LTD, STD, Dental, and Vision Insurance
3. Foreign workers compensation and Defense Base Act Coverage
4. International medical evacuation and assistance
5. International security such as kidnap and ransom insurance
6. International property and liability

Expatriate Insurance in India

India is becoming the technology center of the East, and unlike the old days where Indian expatriates headed to the U.S. to work in Silicon Valley, the opposite is occurring. U.S. expatriates and expats from all over the world are heading to India to work and tap a marketplace of over 1,000,000,000 people. Expatriate insurance in India and a full expatriate insurance package needs to be considered for any foreign national working in India for over six months.

Expat insurance India needs to begin with a good international major medical insurance plan. Quality of healthcare in India has improved but there is only a small list of medical facilities where expats would be truly comfortable. Medical evacuation in India is still an essential benefit because in many parts of India, the nearest appropriate facility is not ground transportation but a lifeflight may be necessary. Expat medical insurance in India, if you surveyed the expats on the ground there is dominated by BUPA International, CIGNA International, and AETNA Global Benefits.

Expatriates in India should also be offered a separate and special international life insurance benefit and international long term disability.

Just a few years ago, not too many people made the same kind of security plans for expatriates in India that they would for say Pakistan or Lebanon, however the Mumbai incident had everyone take notice. A quality kidnap and ransom insurance plan for India is a good way to provide essential security services and a kidnap lump sum benefit at the same time.

Third Country National Insurance vs. U.S. expatriate insurance

When looking at insurance for third country nationals, should the same decision criteria be used as when looking at insurance plans for U.S. expatriates? In 2009, we think the answer is now no. For years, no one thought about TCN insurance in a different way than U.S. expat insurance. However, in most cases the two groups should no longer be lumped together in the same plan. Third Country National Insurance Schemes should be different and these are the major considerations:

1. TCNs do not need elective access to U.S. care like U.S. expatriates do, so why pay for an expensive expat medical program that allows elective care in the U.S. TCN insurance schemes should limit coverage to both the home country and host country, and restrict medical care in the United States to just emergencies while visiting the U.S. Some TCN plans can be regional, for example, coverage offered throughout the EU.
2. TCNs may have a different expectation when it comes to the benefit package they receive. For example, a U.S. style international long term disability insurance benefit is probably not what a TCN would expect or require, so why provide this expensive benefit? TCNs may be perfectly accepting of a PTD benefit that would replace salary for 3 years and after which pay a lump sum. A less expensive option for TCN insurance.
3. Regarding the international medical and dental plan, TCNs don't need international medical plans with bloated U.S. legal provisions which add to the overall cost, such as HIPAA and COBRA. There is no legal need to offer a TCN 18 months of COBRA continuation so why offer an expensive plan that has this feature at a cost.

Overall, a good rule of thumb is, if you have a group of 10 or more Third Country Nationals, when considering the proper international insurance package for Third Country Nationals, consider a separate benefit package and resist the temptation to just lump them in with the U.S. expatriates. The savings could be significant.

Kidnap and Ransom Insurance Buyers Guide for Individuals

McKinley International Risk Management is asked a lot of questions about Kidnap and Ransom insurance, surprisingly by individuals as well as corporate entities. Personal kidnap and ransom insurance plans for individuals or security programs for expatriate families are becoming more popular. However, we are amazed these kidnap and ransom plans are not more popular based on who critically important they are in about 50 countries.

An individual living in one of the following countries, and of high net worth absolutely should consider a personal expatriate security program or an individual kidnap and ransom insurance program for themselves and their family: India, Indonesia, Honduras, Guatemala, Columbia, Mexico, Panama, Ecuador, and / or living almost anywhere in the Middle East or Africa. Yes, these plans can cost a family $1,500 to $3,000 per year but for an individual making over $250,000 US a year, to not consider these programs is almost irresponsible.

If you are an expatriate looking at these personal international kidnap and ransom security insurance plans, we hope you will contact us at http://www.mckinleyinternational.com However, you should find these tips useful.

1. Purchase at least $500,000 of an insurance "benefit" for a kidnap and ransom plan. However, much of the ransom benefit paid out in many countries is a lot lower than you may expect and probably would not approach this amount.
2. Most importantly, make sure the family k&r plan includes unlimited consulting services. To focus just on the ransom benefit is the # 1 mistake.
3. Make sure the company you go with has people "on the ground" and experience in the country where you and your family are living. If they have to "fly someone in" from the U.S. this is not much good.

Expatriate Dental Insurance

For expatriates living outside of their country of citizenship, expatriate dental insurance, and finding quality international dental care can be a challenge.

If you are an expat working abroad for an employer, the employer in most cases can easily secure an expat dental insurance plan along side the expatraite medical insurance scheme. Expat dental on a group basis is often very affordable compared to the medical and the cost per person per month is typically no more than $40 per month.

If you are an individual expat living abroad, it is next to impossible to find an individual international medical plan for expatriates that also offers dental. The expat may be able to find international dental insurance inside of the host country but care would be limited to the host country and would never allow care back in the U.S. or the home country with the exception of EU dental plans that work throughout the EU.

Many U.S. expatriates will join an individual dental program in the States, like Delta Dental, and those that come back to the States at least 2 times a year and seek care while back.

For any expatriate with dental pain, seek treatment of any kind immediately. Small dental problems can turn into larger medical problems that can immobilize someone until the proper care is found. Many medical clinics in most countries that serve the expatriate population may have some limited international dental care, so check there first.

Expatriate Disability Insurance Buyers Guide

If you are moving overseas for over 1 year, whether your employer provides the insurance or not, you may want to consider buying expatriate disability insurance, especially if you are the only income earner of the family, with your expatriate spouse unable to work because he or she cannot get a work permit.

First, make sure your employer is even providing expatriate disability insurance, or make sure the home country long term disability insurance will work for you while you reside abroad. This is the number one mistake expatriates make with international long term disability insurance. They become disabled overseas and find out the carrier back in the U.S. will not pay the international disability insurance claim.

Even if you employer provides international long term disability insurance what is the benefit. Yes, the plan may replace 60% of your income but what is the monthly maximum. The monthly maximum benefit on expatriate disability insurance plans can be as little as $5,000 a month and this does not go very far for most expats.

Of course, if you leave the company you have nothing to take with you. Many will purchase expat disability insurance on their own, a supplemental plan over and above what the employer is providing that will move with them if they leave the job or go to a new company. If you purchase you own expatriate long term disability insurance program, make sure it will work for you if you return to your home country. Many plans will only work if you are residing outside of your country of citizenship full time. For more information on expatriate disability insurance please visit this link.

Expatriate Insurance China, What are the most important considerations?

Looking for group or individual expatriate insurance in China? What are the most important things to consider before you make a decision regarding insurance and employee benefits for expatriates in China?

First, working with the proper medical evacuation and assistance company in China is extremely important as not all international medical evacuation companies have the same capabilities to fly you out of China in a medical emergency, or get you to the nearest appropriate facility if you have a medical crisis. All of these companies will tell you about their great capabilities for expatriate insurance in China, but very few can arrange for quick and immediate life flights in most regions. You can't just "takeoff" or fly into China unless you want to be shot down!

When considering expatriate medical insurance in China, make sure you have a plan that allows access to the best possible care in China, as well as offers elective care back in the home country without special permission. There are several clinics in China that actually cater to expatriates, and expatriate healthcare in China is a whole lot easier if one can avoid the public Chinese hospitals and can stay in the expat clinics. To a U.S. citizen, the public Chinese hospitals are shocking to say the least.

Security for expatriates in China is becoming much more important. People have this image of China having almost no crime, and most areas are much safer than the U.S., however there are security issues in China that one cannot ignore if he/she wants to properly protect themselves and their family. Security in China may not always involve a kidnap and ransom insurance in China, but there definitely should be a security plan in place at all times. Look at this post, does this sound like China to you? It is.

Thousands of angry ethnic Han Chinese wielding clubs and machetes roamed this capital city of Xinjiang territory and engaged in sporadic revenge attacks against Uighurs after deadly riots Sunday.

This information is provided ourtesy of McKinley International Risk Management, an international insurance broker that specializes in expat insurance in China for individuals and groups

International Workers Compensation Insurance for Expatriates

McKinley International has put together four important items that need to be considered when purchasing international workers compensation insurance for U.S. expatriates or Third Country National Employees (TCNs).

When considering when to implement international workers compensation insurance:

1. What is the makeup of your group (U.S. expatriates vs. local nationals vs. TCNs)
2. Find out exactly what the existing U.S. program would cover, with U.S. workers comp insurance typically limited to U.S. expats, and local nationals and TCNs needing a new international workers compensation insurance plan.
3. If the U.S. plan can cover U.S. expats for foreign workers comp. find out all of it's limitations. There may be a period of time a U.S. citizen can spend overseas before the coverage would end. It would be unlikely a PA workers comp insurer will extend coverage to a U.S. citizen working in Japan for 7 years for example!
4. A solution for international workers comp will most likely cover U.S. expatriates and TCNs but not be appropriate for foreign nationals. Workers compensation insurance for local nationals would need to be purchased locally, or if they have a strong national health insurance plan, it may not be needed at all.

When looking at international workers compensation quotes, find out what other features may be contained or embedded in the quote. Some plans come with the ability to add all of the following:

• kidnap and ransom coverage / expatriate security
• medical emergency air evacuation
• political evacuation
• international liability
• international property and personal effects
• limited "traditional" medical coverage for travel not expat assignments.

International Risk Management Best Practices for Expats

In this post we would like to list the five most important items that make up international risk management best practices for expatriates. Unless all five are done, no organization can claim they are following international best practices.

1. Insurance programs for expatriates should actually be created for international exposures, and should not be home country or U.S. plans meant to work internationally. A square peg fitting into a round hole.
2. Expatriates should receive an expatriate policy and procedures manual also called and expatriate employee handbook. In fact, they should be asked to sign off on the fact that they received such a document.
3. Organizations with expatriates should have an easy way to communicate with new expats, and some sort of communication portal.
4. U.S. expatriates should not be treated the same as non-U.S. expats also called third country nationals, in the following ways: TCNs do not need a HIPAA plan. TCNs do not need access to elective care in the U.S. U.S. benefit law provisions do not need to be extended to TCNs like COBRA continuation for expatriates.
5. Expatriates should be given a list of voluntary products for essential insurance programs they will need during the assignment that the employer is not providing. For example, vacant homeowners insurance for expatriates. It's almost as important to point out what the employer is NOT providing vs. just what the employer is providing.

International Insurance Broker Consumer Guide

What to look for when choosing an international insurance broker or an international brokerage. First, remember why international brokers are necessary, because 99% of U.S. insurance brokers and consultants do not understand international benefits.

True, there may be some U.S. brokers that understand expatriate medical plans, but that is just one small part of being a total and full service international insurance broker for clients that may have 20 different international needs over a 10 year period.

When choosing an international insurance broker you should consider all of the following:

1. Do they understand both international disciplines; global employees benefits and global property and casualty?
2. Can they place insurance for all four classes of international employees; expatriates, third country nationals, foreign nationals, and global travelers? Placing admitted coverage for foreign nationals takes a particular expertise and may require local licenses.
3. What is their experience in international benefits. Any international insurance brokerage that has not been doing this job, or not been in the business for over 5 years will not be very experienced.
4. Ask about their licensing. Are they an international insurance broker licensed in multiple U.S. states and can they place admitted insurance for local nationals abroad?
5. Beyond international insurance, what is their experience on international service programs such as international EAP, international medical air evacuation, and security?

Working with the right international insurance broker can be the difference between everything flowing smoothly and a $100,000 uncovered claim showing up on your desk one day.