Healthcare for Global Business Travelers

Q: To what extent are your Mexican customers looking for a product with specific features?

A: We are present in 190 countries and we have found the profile of our customers is similar regardless of geographic location. We target clients who have a need for international coverage, such as frequent travelers and those whose lifestyle transcends country borders. Customers might need this for different reasons, for instance expatriates seek coverage in both their host and home countries. Nonexpat customers want to have the peace of mind of access to medical care and treatments elsewhere in case of serious health problems and this is important for people living in countries where high-quality healthcare services are scarce. In addition, there is a global wave of medical tourism. After 10 years of having a direct presence in Mexico, we now have 30,000 customers and the potential is probably 200,000 to 300,000. Mexico was the first country in Latin America where we launched this suite of global health plans after conducting thorough market research showing that the behavior of our customers in Mexico does not differ from that of our Chinese or American customers. Frequent travelers and international citizens do not want to be told where to obtain treatment.

Q: How important is corporate insurance for your commercial strategy?

A: We do not approach large companies to offer them insurance for their employees because we do not offer quantity, but a product richer in benefits and with international coverage. Medical insurance is one of the key benefits that employees seek and can receive while working in a company and this is true in a global context, although the spectrum of needs among employees is relatively broad. Some positions require an excellent local coverage as a risk management measure, while top positions need comprehensive international coverage if they are frequent travelers.

Q: What should be done in order to increase the number of people with private insurance in the country?

A: Corporate insurance is driving the growth of the private insurance market in Mexico. With the rise of wellness programs, corporate insurance is also a solid benefit for employees and has proven to be successful in retaining talent. Replication of healthcare coverage is also a common issue in the region and this has been addressed by several countries such as Brazil, where the public system can actually charge private insurance companies. Retirement is also a concern for both private insurance companies and public institutions, because people are living longer and healthcare providers should be ready to face this colossal challenge, especially considering that many public institutions have not modernized their processes and operations in decades. When these institutions were created in the '40s and '50s life expectancy was 50 years. Retirement age was 45 years. Today, life expectancy is between 75 and 80 years depending on the country and people are still productive at the age of 65. Prevention is vital for both individuals and governments. Every dollar we invest in prevention represents three dollars saved in the long term.

Q: What are the factors contributing to the rise of medical insurance costs?

A: As people age, their risk of becoming ill increases and we are one of the few companies in Mexico willing to provide insurance for people up to 75 years old. Population aging is extremely important today. It has been said the first person who will live 150 years has already been born. While increasing life expectancy is highly desirable, it certainly represents a burden for the healthcare budget. Thirty years ago, people used to die from factors such as infections, accidents, or heart attacks, but such events are now controlled and life expectancy is prolonged. A stagefour cancer patient can survive three or five years today, but medical care has a cost.

Q: What are your priorities in Mexico?

A: We are re-launching our travel product in Mexico, which is a very attractive option for those seeking international protection. Customers can buy it online or with distributors and customize it. It is also convenient for corporate agencies, which can buy a thousand days and cover their employees when they travel.