Global downturn ‘could hit expat clients’ spending habits’

Medical insurers and brokers with clients based or heading overseas face big challenges in the coming year, as British expatriates cut back on spending due to the economic downturn.

A major new survey by Bupa International has found that almost three quarters of expats are concerned about the economic downturn and, in particular, the negative impact of currency fluctuations, with the value of the British pound falling by 17% against the euro since the start of 2007. According to Bupa International, expats say they are now spending less money, while saving is proving “increasingly difficult”. Falling property prices are also affecting 40% of the expats surveyed, while over a third are concerned about the impact the global downturn will have on their pension.

When asked how the credit crunch is impacting their daily lives, almost half of expats said they are not spending as much when they go out, while around 40% are reducing their spending on luxury items such as holidays and clothing.

However, in spite of the global financial uncertainty, the research suggests that most expats believe their lifestyle is better in their new country, with most citing the weather and the way of life as the key benefits of an international lifestyle. Over a third say their health has improved since moving, due to more exercise and a healthier diet.

Tim Slee, global sales director at Bupa International, said the results show that the onus will be on insurance providers and brokers to help customers on tightening budgets.

“We need to ensure they remain well-covered internationally for healthcare at a price that works for them, even if this means adjusting their cover back to what they consider to be the essentials,” he said.