Unsurprisingly, many organizations are focusing on reducing the cost of their international assignment programs. What is more surprising, to me at least, is that more than 60% of organizations still pay their global talents in accordance with compensation levels in their home countries. I thought this percentage would be much lower, believing that While big organizations like Oil & Gas or IT do usually keep compensating expats generously, many smaller ones switched to local based contracts in recent years.

Maybe it is a trend that is South East Asia specific. Or it could be that this 60% figure is influenced by the fact that survey respondents usually are from these big organizations. It could also be because when one of those expatriates enjoying a juicy packages wishes to stay in the country he is posted in, he usually has to switch to a local contract – switching from the international HR department (the one answering these questionnaires) to the local one (not answering) in the process.

Anyhow, this report is a very interesting read for all, especially if you are a HR specialists, or an expats who is looking to better negotiate your next package

The country you are living in / or to which you are moving to can have a bearing on your decision. Some countries enjoy better healthcare than others. However, I personally recommend expats do chose international cover over a local plan for the following reasons:

• They are international (Duh!), which means that you will not have to only rely on the medical facilities in the country you are living in. Many prefer to know they can go home, or to an alternative country,  for treatment should they become sick.
• They will follow you wherever you go. This ensures you don’t have any waiting period when moving to another country Icing on the cake, you don’t have to deal with potential pre-existing exlusions once you are insured.
• They gives you more freedom selecting where and by whom treatment shall be carried out. International provider usually enjoy much larger network of participating hospital.
• They usually are renewable for life. Whereas local plans will usualy only be renewable until age 65.
• Your level of coverage is much higher with an international policy, typically over 1 Million USD. You also enjoy fewer exclusions.
• International policy renewal premium are community rated. This means that your premium shall remain manageable even if you were severely ill over the past few years and had to go regularly to the hospital. To compare, local plans usually are based on previous years claim.
• International plan were set in place to replicate the same level of protection European used to enjoy back home. This means that they are not as cheap as local plans, but provide more peace of mind regarding the level of coverage in place.

At the end of the day, the choice is yours. There is no universal truth.