Aviva UK Health/OZF Achmea health insurance
This product review covers three territories now included within Aviva’s international private medical insurance (iPMI) portfolio, although we focus on the largest – the Netherlands. An IPPR (Institute of Public Policy Research) 2013 survey estimated that there are around 48,000 British expats living and working in the Netherlands.
As part of its programme to develop a global footprint in key expatiate markets, Aviva has entered into an arrangement with local Dutch insurer OZF Achmea. OZF is a small (40 employees) Dutch not for profit organisation that, since 2005, has operated within the Achmea Group in the Netherlands and provides health insurance nationwide there.
Under Dutch law, expats are normally required to have compulsory Dutch national health insurance provided by a local insurer. Under Aviva’s arrangement, potential customers in the Netherlands can now be covered by OZF Achmea at reduced rates, as well as benefiting from cover under Aviva’s International Solutions plan if they have to travel to other countries, with a significant reduction in standard rates.
At the same time as its Dutch arrangement, Aviva has added Bahrain (which has 12,000 UK expats) and Jordan (8,000) to its Gulf Solutions private medical cover schemes. This is also achieved using local insurers and providers.
Comment: Many expats and their employers do not bother to take out iPMI cover, with the potential result that difficult and expensive problems can arise if a health issue occurs. iPMI is the solution but it can be expensive, premiums have been rising a lot faster than inflation and many territories are now very prescriptive about a) having cover b) what that cover must include and c) that it must be arranged through a local provider. IPMI insurers’ solution to that is to enter into arrangements with local providers which has the advantage of their local knowledge but as with any JV, the more mouths there are to feed, the more expensive the solution can be (or the lower the profit to the insurer).
The Dutch market is bigger than many Middle Eastern territories so this new arrangement could open up another market to brokers and the fact that customers get premium discounts and the security of Aviva’s own iPMI plans if working abroad is an attractive combination.
Plus points: Aviva now offers a new solution to expats in the Netherlands (and Bahrain and Jordan); This is achieved by a tie-up with an established local provider; If travelling abroad customers can be covered under Aviva’s International Solutions plans; Premium discounts all round; Many expats do not have iPMI so the market is far from fully mature.
Not so plus points: With many countries now requiring expats to have cover and/or stipulating that cover must be through a local provider, the iPMI market can be a minefield for non-specialist advisers; iPMI can be expensive and premiums have been rising faster than other prices.
Website: http://www.aviva.co.uk
Rating (max 10): Innovation: 8. Overall: 8. Gold
Tags: Aviva; iPMI