James Cooper, William Russell's sales director explains how intermediaries could be missing out on the opportunity to advise their expatriate clients on international protection products.
Advising expatriates remains a booming market for most international and offshore advisers, but with the global downturn starting to bite, many clients are looking nervously at stock market performance and are increasingly reluctant to commit money to investment products. Despite the decline in investment sales, there remain many opportunities for intermediaries to build their expat business by advising on essential and relatively recession-proof protection products. 
Expat numbers are still increasing, both from businesses seconding staff overseas and from individuals moving abroad to improve their job opportunities or retirement lifestyle. The financial packing list for expats is well known by advisers, including international private medical insurance, international pensions and offshore savings vehicles - but many advisers could be overlooking specialist international protection products as a key part of their expat clients' financial armoury, and missing out on sales opportunities into the bargain.
There is also clear evidence from the market that seasoned expatriates are paying greater attention to income protection policies in preference to savings and investment products as a means of ensuring their financial well being in the current economic climate.
Most protection products are designed for domestic markets and much of their effectiveness is left behind when an expat passes the border control of their home nation. Yes, it's true, some domestic life insurance and income protection plans will provide some security overseas - but they are not designed for the job. The level of protection may well be reduced through exclusions and the claims process, as it is inevitably geared to domestic claims, could be a nightmare.
Expats need protection products designed for international living if they are to provide effective financial security for themselves and their families. Fortunately there are a number of top quality international life insurance and international income protection plans which are designed specifically for expatriates. These provide full protection all around the world, international claims capability and 24/7 emergency assistance. In addition to life and income there are also accident plans and international travel insurance products which can provide additional protection to expatriates. These are frequently available as low-cost additions to international private medical insurance plans.
Increasing sales of expatriate protection plans can be readily achieved by adopting a structured approach to marketing. Most international advisers will be more than familiar with the international protection products available however providers will be happy to educate sales staff about the products if needed and give guidance on the sales angles for expat clients.
The key to increasing sales is to identify the times when expat clients will be reviewing their finances. The annual renewal of their international private medical insurance provides an excellent opportunity to review all protection plans and identify gaps in cover. A well constructed marketing letter at renewal could well deliver increased business. An alternative is to run a mailing or email campaign to cross-sell international income protection and life insurance to all clients without this type of cover. As the downturn bites there is little doubt that many clients' thoughts will be turning to protecting their income rather than adding to their investment portfolios.
Corporate clients who purchase group International Private Medical Insurance for their expatriate workforce can also provide an excellent cross-selling opportunity for international group life insurance and income protection products. Here the sales message will not be about downturn, but of the importance of providing staff and their families with long term financial protection in the event of the death of the main salary earner or long term illness which prevents them from working. Employers will be quick to see the advantage of international plans which both provide protection to expatriate employees and guard the company against a long term unproductive drain on resources.
Advisers with international and expatriate clients may well be seeing a slowdown in investment sales as clients become nervous of stock market performance and the threat of recession. The silver lining however is the opportunity to increase sales of specialist international protection policies as more and more expat clients consider ways to protect their finances through the downturn. The winners will be those advisers who use current market conditions as an opening to offer their international clients excellent financial advice and provide them with life insurance and income protection products designed specifically for expatriate living.
William Russell - specialist expatriate insurance provider
