International private medical insurance – relocation services
When companies offer their employees the opportunity to relocate for a new job or position, it’s an exciting time and a big move, but one that involves many small details. Overseeing these details is often the job of a move management company, which can coordinate many aspects of the process.
Relocation services can make the necessary arrangements on behalf of the employer, helping them effectively manage their international workforce, find new accommodations and help employees integrate into new communities. An essential part of these personalized packages is insurance.
Louise Worbey, Head of Global Mobility Operations at KPMG, encourages each member firm under the KPMG umbrella to consider a number of key issues and best practices when appointing relocation providers and agreeing on policy associated insurance.
Worbey told the ITIJ: “We would ask a number of questions about insurance coverage as part of any request for proposal (RFP) or due diligence as part of a contract with a relocation provider. The types of questions we would expect are: what are their claims records?
His teams will ask for references from other clients regarding insurance issues and want to know how they handle insuring the transferee’s property in transit, and large or bulky items such as pets, cars or boats.
Relocation costs can vary greatly depending on the location of the move and the expat’s relocation package.
Lynn Pina, Director of Marketing at US-based GeoBlue, explained, “We know that expatriate assignments are more costly for organizations to manage due to the additional and unique needs associated with managing expatriates from the point from a benefits, tax, health and compliance perspective.
“According to a PwC survey, the average management cost per expatriate was $22,378 per year compared to $3,000 for the average for all employees, and the cost of a three-year international assignment can easily exceed $3 million. dollars according to the Society of Human Resources Management. .
“A study estimates that international assignments have a 25-40% failure rate and that the direct costs of a failed assignment can range from $250,000 to $1 million. It is therefore very important that employers take proactive measures to reduce and mitigate the risk of mission failure.
KPMG’s Worbey agrees that the costs involved in relocation can be significant. “We move all levels of staff, but especially when you move more experienced staff with families the costs can be significant,” she said.
“It is absolutely essential to consider each family member and consider their needs when developing a resettlement program that will be in line with policy, but also supportive enough to help them settle with success and focus on why the assignment was originally set up.
“The financial costs of a failed move can be significant. However, regardless of the financial situation, we have a duty of care to our employees that includes the mental health and well-being of their entire family unit – we don’t just move the employee, we move and care of all his family.