High Net Worth Individuals Represent Massive Potential For iPMI Providers

Ian Youngman, author of the brand new iPMI market research report, International Health Insurance 2023, reads the latest report on High Net Worth Individuals by Julius Baer: Global Wealth & Lifestyle Report 2023.

HNWIs in all regions are spending more on health insurance to secure the best healthcare, should they need it in the future.

With travel restrictions no longer an issue, HNWIs around the world are on the move once again.

Summary

• The Lifestyle Survey questioned high-net-worth individuals with bankable household assets of 1 million USD or more across Europe, APAC, the Middle East, North America, and Latin America on their behaviour in relation to their consumption of products and services, and financial needs, between February and March 2023.
• People are mostly spending more, travelling more, and taking care of themselves.
• HNWIs are taking steps to preserve their health and wealth on an ever- increasing level.
• Health insurance is a top priority for high net worth individuals.
• HNWIs in all regions are spending more on health insurance to secure the best healthcare should they need it in the future.
• Having come through the pandemic, respondents listed maintaining their and their families’ health as one of the top priorities.
• Improving nutrition, taking time to recuperate and relax, and raising fitness levels have all been highlighted.
• More than half in all regions have used gym memberships in the past year, and in Europe and APAC one in four exercised almost once a day.
• Personal gym equipment is also high on the list, with home exercise being particularly popular in APAC.
• With travel restrictions no longer an issue, HNWIs around the world are on the move again.
• Travel for both leisure and work is on the up and respondents are increasingly spending on flights.

Analysis

• This is the clearest indication yet that HNWI are a massive health insurance market.
• As of December 2022, there were estimated to be 15 million HNWIs in the world according to the World's Wealthiest Cities Report 2023 by Henley & Partners.
• While some IPMI insurers target high net worth individuals, many do not.
• HNWI customers demand superior personal service so if you cannot offer a 24-7 response then this is not a market for you.
• Home insurers who thought this was an easy earner got nasty shocks when they underestimated the level of service and response to any query, not just claims.

What Next?

• HNWI will pay for top cover and service so it is no point competing just on price.
• There is a massive IPMI opportunity.