This feature column is dedicated to the men, women and their families who reside, work, and travel extensively overseas and who share certain common interests and a sense of adventure. They face unusual risks and inconveniences working in the emerging markets of Asia, Africa, Oceania, Latin America, Eastern Europe and elsewhere. They have given up the comforts of relatives, friends and the safety and security of life at "home" to conduct their government’s, company’s and/or other sponsor’s work abroad. 

PERILS ABOUND ABROAD

If you are thinking about traveling, working or studying overseas, or already reside abroad, then you ought to know that life is more complex than it used to be, especially if you are living in or headed for an emerging market in Asia, Eastern Europe or Latin America. Besides adjusting to a new culture with its new set of socio-cultural and geo-political differences, there are massive complexities and challenges related to staying healthy and arranging such simple things like medical care, diet, housing, schools, transportation, sanitation, immunizations, work permits, residency visas, investments, banking, taxes, personal cash management, and so on. Then, there’s the stress and details of the move itself, and the possibility of damage to your prized household belongings while enroute or in storage. And you’ll also want to check to ensure that your regular protections from your home country follow you abroad.

Unfortunately, most newcomers, and even some old pro’s, are often all too willing to start their "adventure" with little more than packed luggage and a set of air tickets. Traveling into, through or near some emerging markets, especially ‘A’ List countries, there are good reasons to take some advance as well as everyday precautions.  ‘A’ List countries are not just those politically taboo places commonly referred to as hostile or enemy States. This list includes places that governments and insurers regard as high risk to foreign citizens, business and casual travelers. As such, they fall outside the scope of most insurance and social benefit policies. The list includes all of Latin America, most of the Tiger Economies of Asia, and half of Eastern Europe. They include places where things can happen suddenly and unexpectedly, where violence, rioting, strikes, hostage situations, and insurrection can occur or spread in just a matter of hours. Simply recall recent events in the Philippines, Fiji, Indonesia, and Malaysia. 

Security, Well Being and Hidden Dangers

Aside from the obvious challenges and physical dangers, there are other threats involving the protections we commonly take for granted. Included here are one’s well-being, security, and career stability, though these perils may not be immediately evident. A thorough review of your and your family’s protections, including your insurance, pension, and social welfare benefits, can go a long way to make your journey and stay abroad less risky and more enjoyable. Before you depart, consider the checklist below. And please bear in mind that it is just a starting point to develop clear thinking and the necessary changes in one’s approach and behavior patterns. Try to imagine the hidden dangers that lie behind each item. Also included is a related chart on the available types of healthcare coverage worth considering.

Do's and Don’ts for Expat’s

While there is no guarantee as to how well one will handle duress, some pre-trip preparation is considered better than none. Here’s a short list of things recommended by experts:

• Is your stored and in-transit personal property protected by adequate coverage? 

• Will your personal property and valuables be protected once you receive them abroad? 

• Do you have adequate motor and personal liability coverage in case you or your family injures others while abroad or back home on leave? 

• Have you confirmed the validity of your health protections with sponsoring organizations? 

• Do you have valid travel, life, disability, accidental death and dismemberment coverage? If yes, has an independent expert reviewed?

• Will such protections follow you overseas? 

• Pay attention to definitions of war, riot, insurrections, danger zones, self-inflicted injury in your coverage. 

• Do you have valid coverage for post-traumatic stress with related time-off-work, should the worst happen, i.e., like kidnap and ransom?

• For coverage that follows you, obtain specifics on what to do in the event of an emergency overseas. 

• EU, Canada, Australians, other nationals must check that their social health benefits will extend to ‘A’ List states. 

• Verify that your pension and social security contributions and benefits continue or that an alternative is in place. 

• All confirmations, instructions, etc., should be received in writing. 

• Spouses can easily be left out in the cold, so be sure to check on such circumstances. 

• Do you and your family have a list of emergency telephone numbers memorized, placed where needed and set up crisis lingo code words?

• Is there a corporate and personal contingency plan in place? 

• Have you had any "dress rehearsals/fire drills" so as to anticipate crisis events and analyze available options? 

• Have you registered with the local embassy/consulate? Do you participate in the local "warden" program? 

• Is there a Crisis Management Team with a written policy, plan, decision-making and executive action in place? Is there a TRM services provider hired?

• Was there pre-trip security advice, including a planned escape route to a safe haven identified? 

• Is a "ready bag" prepared with cash, open air tickets, passport, visas, and other emergency travel items? 

• Have you and family agreed in advance to covert danger ‘lingo" to signal duress in and out of the office? 

• Are you familiar with how to use public telephones and phone cards in your overseas destinations? 

• Do you and family members have a map of the city? 

• Have you asked the right questions and taken adequate safeguards to protect your career? 

These are just some of the preparations and precautions that might be considered. However, when a crisis breaks out, events move quickly and take on a life of their own. A stunned state of shock or hyperactivity is common and specialized training and preparations are necessary. There’s little time to think things through. A clear, decisive mind avoids hesitation, which can make a critical difference during a simple mugging to armed kidnap, natural disasters, emergency evacuations, and related mayhem. 

Types Of Specialty Protections (A&H, PA) For Overseas Travelers

The set below shows a generic list of available Accident & Health and Personal Accident plans as well as 24/7 Travel Risk Management (TRM) services i.e., security and logistic options, and evacuation and extraction coverage. There are both basic and comprehensive plans; one or more may be suitable depending on one’s circumstances. The chart is to help distinguish types of protections and suitability under differing circumstances for people who are uncertain of their needs. It shows Product Name, Purpose, and for Whom Intended:

1. Worldwide Comprehensive Major Medical

Groups or individuals needing comprehensive major medical coverage, anywhere in the world with 24/7 365-day permanent coverage not just for the trip period. It pays for covered medical expenses for illness, accidents and injury while traveling, living and/or working outside one’s home country. May not or can be Obama compliant.

Available policies offer between US$250,000, $5 million or unlimited max benefit limit for individuals or corporate groups and average premiums range from $3,500 to $8,000 per person for 12 months.

For global citizens & residents working abroad, foreign nationals outside their home country, international citizens who travel often (Expats, KLN's & TCN's).

2. Global Travelers-International Travel Medical

Travel or short term medical protection for infrequent travelers spending 3 to 179 days/year outside their home country, but whose domestic, permanent coverage doesn’t follow them. Can be arranged for individuals or groups (business or pleasure). These policies provide somewhat broad emergent coverage (excludes wellness checkups, maternity, childbirth, and long-term diseases) for individuals only while traveling away from their home country. Travel Medical coverage applies only for the duration of a trip (3-90 days) and can respond to medical expenses for illnesses, accidents, injuries and related office visits, inpatient hospitalization, diagnostic / lab tests, surgery, medicines, emergency medical evacuation and more. Coverage can be for all trips taken during the course of the year and covers accident, illness and injury.

It is for global travelers going overseas, foreign nationals visiting the United States, or international travelers interested in renewable coverage. Group coverage intended for corporations, travel organizations, tour groups, schools, students, missionaries, global consultants, lawyers, physicians, etc. On average, per trip premiums range from US$50-$800 per person.

3. Medical & Political Evacuations

Supplemental cover for emergency medical & crisis evacuation / repatriation. Used by travelers whose permanent coverage doesn’t provide or limits these features. 

Individuals & families who have limited medical coverage overseas, but would like evacuation coverage for catastrophic situations.

4. Travel AD&D, Trip Cancellation, Delay, Interruption, and TRM

Accidental Death & Disability program for global travelers, residents, not protected otherwise. Some plans can add coverage to protect travelers from economic loss due to events that cause trip delay, cancellation, or interruption. This is worthwhile coverage especially for high priced, prepaid tour packages, cruises, safari, and air tickets.

This is very specific coverage for people who already have major medical or travel medical outside their home country, but want additional assurance and protection. It may provide travel life and disability benefit for accidents/injury only. Major medical and travel medical can include this coverage. Policy benefit limits range from US$250,000 to $500,000, with deductibles from $250-$1,000 and premiums from $300-$1,000 for the broadest full-year coverage for each individual covered. TRM services can be purchased on a group basis for an entity. TRM includes a valuable roster of preventative and loss control services i.e., 24/7 Medical & Security Assistance, and Logistic Support, Safety & Security Alerts, Site Specific, Pre-Trip Preparation. Depending on the insurer, group size and plan design can cost from $300-600/person annually. Benefits payable in hard currency, i.e., GBP, EU, and U.S. dollars.

For individuals and families that travel, travel medical insurer or K&R insurer will include some TRM services.

5. Kidnap & Ransom today’s newer policies protect high value targets (individuals & organizations) against economic loss resulting from kidnapping, extortion, malicious detention, hijack, malicious threat, and ransom demands. Plus, some plans cover bodily injury and mental trauma related to the crisis incident. Virtual & Express-Kidnapping can also be covered. Ransom is 1st paid by entity, victim, or family, then reimbursed by insurer. Coverage can be arranged for organizations, individuals, families, and dependents including household help, drivers can be covered. Generally, can cover insureds for short or long-term travel, especially for global locations identified and known by governmental agencies for this sort of crime. There can be domestic hooligans, gangsters, and terrorist group as perpetrators. Coverage will also include crisis response consultant teams.

Medical Evacuation Only

These policies do not provide major medical or general travel medical expense coverage, just first-aid type coverage and emergency medical evacuation. Caution, some plans have “small print” limitations and conditions. Major medical travel policies often, but not always, include this additional coverage.

Career Risks

Similar perils abound for those climbing the peaks of corporate terrain. So, if you are about to leap for that great challenge in far off "la-la land," don’t do it without serious thought for your and your family’s wellbeing. There are significant downsides that must be carefully considered, including opportunities that may pass you by simply because you are “out of sight, out of mind." 

Oftentimes a posting is fixed to a short term, but because of your learned competency you’ll find yourself kept or continually sent abroad to fix problems occurring in the area where you’re considered the expert. And, despite your debriefing, management might not provide a clear picture because they have not been able to define the real problem. What may be overlooked is that the problem really exists because of a lack of understanding of the market or a non-existent and/or poorly developed strategy.

"Catch 22"

The reasons behind the apparent problem relate to a noticeable lack of overseas experience that top executives of many American, European, and Japanese corporations have. Analysis shows that, on average, less than a quarter of their ranks have had profound experience in emerging overseas markets. They often lack that "visceral feel" that all good global executives develop after mastering difficult assignments and the stresses of life abroad. Be aware that for those who dare to take the plunge, the attrition rate is very high because of this "Catch 22": most of your superiors have no point of reference, so try as they may, they are stuck in “never been there, never done that" syndrome.

Promoting International Understanding

Certainly, there is great difficulty for anyone to understand your personal and business circumstances in an emerging market without the experience of having been there. Most likely, they figure they’ve provided you with a company car, driver, house, schooling and living allowances and other perks. What else could be missing? What do you expect the “Normandy Invasion Plan?”

There’s little or no appreciation of the perils and stresses of life abroad, especially if the Home Office types get VIP and "Five Star" treatment during their requisite two-day world-wind visit. The overseas resident not only has to live and do business in the foreign market, but also has to be an interlocutor to explain related business culture and market practices. Unfortunately, management often fails to value your role in promoting international understanding. After all, you're not paid as a diplomat nor a trained Special Forces advance team.

Go Stand in the Corner!

Faced with Home Office’s unstated, but very real attitude of "Don’t care, don’t want to listen, or couldn’t understand even if we did", it is not surprising that many expatriate executives don’t make the grade or quit. According to a study of 152 U.S. corporations by the Conference Board, 80% of senior overseas managers felt that their company did not value nor benefit from their overseas savvy. Most repatriates felt ignored and isolated. Further, the study showed:

• High attrition rate: 15% of expatriates leave their jobs within a year to 18 months of being brought back home, 40% leave after 36 months.

• Lack of strategy: Only 33% of companies with significant global operations have formulated a strategy for dealing with "returnees". 

• Disjointed expectations: 75% of expatriate executives envisioned significant career benefits, yet only 10% get promotions and about half don’t like their new assignments.

In conclusion, be careful. It’s a dangerous world out there without many improvements over the last 20 years. Don’t go dancing off with illusions of exotic places until you address the risks that you, your family, and your career face when living or going abroad.

For a free listing of the ‘A" List countries, please contact us by e-mail.