Working Beyond Borders: The Rise of the Digital Nomad
You’ve seen that picture on social media. The one with a fantastic vista – a beautiful mountain or tropical forest – visible over the top of a laptop, with the caption “Today’s office”. Sure, the post is meant to make others envious, but it’s also the symbol of an increasingly prevalent sector of the workforce – the digital nomad.
Digital Nomads – Up and Coming
A digital nomad is someone who works from anywhere in the world… or at least anywhere with a stable wifi connection. They may stay in a single place for as little as one week, or settle into a particular place in the world for a few months, but they don’t usually intend to stay anywhere long-term. Most digital nomads work freelance or own their own business, though some (around 20%) work for a specific company.
The concept of a digital nomad isn’t new. In fact, there has been talk of how technology will untether the worker from a single location since the early days of the internet. As the prevalence and strength of wifi grew worldwide, and laptops became both more portable and more powerful, digital nomads began to emerge as a measurable slice of the workforce.
The impact of Covid-19 increased these numbers significantly. The pandemic pushed people and businesses to reconsider the workplace landscape, with some businesses favouring remote work, and the number of digital nomads rising to 35 million in 2022. For reference, that number was roughly the population of Canada in 2012.
Digital Nomad vs. Remote Worker
So, what makes a digital nomad different from a remote worker? While the line may be a bit blurry, the general idea is that a remote worker is an employee of a specific company, and is working from a single location (usually from home).
A remote worker would likely have some limitations on where they can work (e.g. within the countries of business for the company), but would also be part of the tax and benefits structure of the company. Digital nomads, on the other hand, have more flexibility about where they work, but they are more likely to be responsible for their own taxes and benefits.
Challenges – It’s Not Always Mountains and Beaches
That “today’s office” photo encapsulates a wonderful experience, but that experience can come at a price. The digital nomad lifestyle faces the standard challenges of long-term travel, such as isolation, culture shock, missing family and friends. There are additional work-related challenges, such as finding dependable wifi connections and connecting with colleagues in different time zones. As independent workers, digital nomads will also need to navigate the logistics of travel plans and financial responsibility.
Perhaps most importantly, digital nomads need to consider their health care. With frequent travel, it can be challenging to find the right coverage for unexpected and/or routine medical needs.
To help with this, there are two potential areas of coverage to explore – travel medical insurance and international health insurance.
The Digital Nomad in the Travel Health Insurance Landscape
At the moment, there are very few products in the travel health insurance industry designed to cover the very specific needs of digital nomads. However, insurance providers are recognizing the need to accommodate this unique group of travellers – the needs of digital nomads were a dedicated area of consideration in the 2023 ITIC Global Conference in Barcelona. Along with the increase in specific visas for digital nomads in various countries, we may start to see more focused medical insurance offerings in the future.
In the meantime, the industry offers two options for medical coverage that might be suitable for the digital nomad – travel medical insurance and international health insurance. Travel medical insurance is mostly designed to consider a single trip – with coverage for emergency needs and provisions to return you home if needed. International health insurance, sometimes called expatriate insurance, considers all of the medical needs you might have while living abroad, such as routine medical examinations and preventive care.
Naturally, these options will come with a variety of detailed differences, as well as a difference in eligibility and cost. Let’s explore some initial questions you can ask to help you choose.
Ask the Right Questions to Find the Right Coverage
If you are a digital nomad considering coverage, it is critical to read the policy details closely or talk to a broker, but here are some questions you can ask yourself to get started.
Do I get any coverage from my home country, and for how long? If your country has national coverage, you may be covered for the first few months of your time abroad, so you might not need to start your policy until after that. Contact your government health authority to ensure you have the right details of your coverage.
Am I looking for coverage regardless of where/when I move around? Consider in particular whether you want to be able to move flexibly from country to country (including visits to your home country), or whether you are comfortable setting up your insurance with specific travel dates. Be aware that many international health insurance options have separate pricing depending on whether you want to include coverage in the U.S. or not.
Do I have a pre-existing condition? This is a standard question for any insurance coverage, but it may be a key difference for your choice of coverage. Even if you don’t have a pre-existing condition now, consider how the coverage you select might view any condition you develop between now and your insurance renewal.
If I have a major incident, do I want to be treated where I am, or returned to my home country? Travel medical insurance approaches the problem as if you were on a trip, so the coverage goal will be to get you home as soon as you are stable enough. International health insurance will have options for recovery in the place you are living.
How critical is coverage for my luggage? It may sound simple, but if your whole livelihood is on a laptop in your luggage, you may want to make sure you are considering that in the policy that you choose.
Do I want to be covered for routine tests and procedures? Consider whether you are looking to cover everything health-related or only the unexpected or emergency needs. If you are comfortable paying for regular check-ups (or plan to return to your home country regularly to handle those things), then travel medical insurance might be the right way to go.
Do I engage in any adventurous activities, such as extreme sports or travel to dangerous locations? Regardless of the type of insurance you choose, you will want to check your coverage before engaging in out-of-the-ordinary experiences. If your particular style of travel includes a lot of adventurous activities, there are special insurance offerings you may want to explore.
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