Active management and ongoing strategic review of expatriate insurance and benefits programs are crucial for a successful international assignment.

“Failed benefits lead to failed assignments,” said TC Williams, principal consultant at Mercer, speaking at SHRM25 in San Diego. “It is very expensive to manage an expatriate in a foreign country for a three-year assignment. Benefits is a small part of that investment, but outside of compensation, benefits are the most important aspect to those workers on assignment, and unsatisfactory benefits packages are the top reason that an assignment fails.”

Williams said that traditional long-term stints are in decline as organizations try to get more creative with short-term assignments and different types of business travel arrangements.  

“The benefits need to be tailored and designed to support each type of assignee,” he explained. “And the scope of benefits programs continues to evolve. Insurers are expanding what they are offering.”

Sample Policy: International Assignment Management

Understanding their benefits is the top concern for employees on assignment, Williams said.

“The top concern for employers is cost,” he said. “And you can only manage cost when you are reviewing your programs regularly. Sometimes, we see that expat benefits have not been looked at for years. If you don’t continuously review, you get rate creep, and the costs compound. Medical claims and costs are on the rise, including an increase in prescription drug spend and mental and behavioral health benefits use.”

HR Q&A: Benefits for Expatriate Workers

Williams said that designing benefits programs has become more complex. In addition to rising costs, employers must also navigate the changing needs of employees. 

“There’s been a big increase in women expats,” Williams said. “That has led to new benefits, like infertility and family planning.”

Changing regulations is another area that benefits managers must follow. “This is a highly regulated environment,” Williams said.

Getting claims paid can be more difficult. The provider landscape has shrunk, he said.

Go Global or Stay Local? 

A big question for employers is whether you should use a global enterprise expat plan or a local host-country benefits plan or maintain home-country benefits.  

“Despite the ever-changing and evolving shape of international assignments, international plans are still the preferred delivery option from multinational corporations to their globally mobile employees,” Williams said.

Today, 90% of employers use an international expat plan, primarily due to the ease of administration. Many compliance aspects are satisfied, and global plans offer the most comprehensive options, he observed.  

“I know many organizations that have tried to do something different, but they came back to this option,” Williams said.

Toolkit: Global HR 101

Design Benefits That Appeal

Williams said that many expats are global citizens of a kind, and they are used to high-quality mobility packages.

“Lean in to your insurer partners for guidance,” he said. “They have incredible insights into the design of these benefits programs. Look at your competitors and benchmark against them. Consider harmonizing your programs based on location.”  

He said that the top enhancement for benefits programs is the addition of mental health benefits, mainly leveraging international employee assistance programs. He added that risk programs such as life insurance, accidental death and dismemberment insurance, and long-term disability insurance are also important to expats.