Orphan Policy
When dealing with international health insurance, you may hear the term “orphan policy.” This refers to a situation where an insurance policy no longer has an active broker assigned to it. For expats, understanding what this means—and how it affects your coverage—is important for ensuring you continue to receive the service you need.
What Is an Orphan Policy?
An orphan policy is a valid insurance contract that remains in force but is no longer managed by a broker or agent. This typically happens when:
The broker who sold you the policy retires, changes companies, or loses their license.
The broker ends their relationship with the insurer.
The client loses touch with the broker and the insurer no longer has an intermediary assigned.
Why It Matters for Expats
While your coverage remains valid, an orphan policy can create practical challenges:
Lack of Service: No broker to answer questions, provide advice, or support claims.
Missed Reviews: Annual policy reviews and premium comparisons may not happen.
Fewer Options: Without guidance, you may miss opportunities to switch plans or renegotiate terms.
What You Can Do
The good news is that orphan policies can be reassigned. Most insurers allow you to:
Appoint a New Broker: By signing a broker of record or letter of appointment, you can transfer the policy to a broker who will take over servicing.
Continue Without a Broker: Some expats prefer to manage their policy directly with the insurer, but this can mean more admin and less market insight.
Switch Policies at Renewal: Renewal is a natural opportunity to review coverage and assign a new broker if needed.
Benefits of Assigning a New Broker
Ongoing Advice: Regular updates on coverage options, premiums, and insurer changes.
Claims Support: Help navigating paperwork and speeding up approvals.
Tailored Recommendations: Brokers ensure your policy evolves with life changes like marriage, children, or relocation.
An orphan policy doesn’t mean you’ve lost insurance—it means you’ve lost your advocate. For expats, reassigning your policy to a new broker ensures you continue receiving expert guidance, claims assistance, and proactive support.
