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Protect yourself from the rising costs of living

You can’t have missed it – almost everything we use and consume is suddenly costing a lot more than it used to. It’s also having a marked impact on internationals abroad.

Published: 19 July 2022 08:58 CEST
Updated: 4 September 2023 15:17 CEST

Protect yourself from the rising costs of living

Worried about rising costs? It's not just you -- prices are soaring across the globe. We find out why. Photo: Getty Images

Almost everyone has felt the effects of sudden cost of living increases, and for many it has had real consequences on where and how they live and work.

With soaring energy bills and increases in both food and petrol, consumer inflation in Europe hit 8.6 percent in June and could reach nine percent by the end of the summer. Those who moved abroad to work or study have felt the effects particularly keenly.

Together with the international health insurance provider, AXA – Global Healthcare, we investigate why costs have soared so quickly, and exactly how this impacts those who have made another country their home.

What is driving the increase in living costs?

While there’s no singular reason that living costs are increasing across the globe, there are several factors that we can point to as contributing to the problem.

First and foremost, the coronavirus pandemic had a devastating effect on manufacturing industries and supply chains around the world. Worker illness, government shutdowns and disruptions to the supply of essential resources dealt a significant blow to global GDP in 2020, resulting in a fall of more than three percent.

Restarting manufacturing and global logistics after months of effective shutdown subsequently led to a substantial rise in the costs of goods, as supply struggled to keep up with surging demand. Even with massive investment in logistics infrastructure, to date there are still lengthy delays supplying goods such as machine parts and electronics, leading to surging business costs.

Climate change has also played a role in the crisis. The increasing unpredictability of weather patterns over the past two years has meant that many regions around the world were impacted by severe weather events, including several in Europe. An increased incidence of heat waves and cold snaps have also placed a strain on gas reserves, leading to escalating power bills.

Find out how taking out health insurance can help offset cost of living increases

Of course, the war in Ukraine is having a serious impact on the cost of living, most noticeably in Europe. The World Bank has suggested it could be responsible for the biggest price shock in 50 years. As a major agricultural nation, wheat prices have begun to sharply increase following the invasion, as has the price of natural gas – Ukraine holds Europe’s second-largest reserve of the resource.

Another consequence of the Ukraine war is spiralling fuel prices. As Russia is one of the world’s top three oil exporters, its current frosty relationship with the West means that the cost of oil per barrel will remain elevated. Coupled with logistical delays in delivering gas and fuel, as an ongoing consequence of the pandemic, consumers and businesses are experiencing substantially increased transport costs.

Boiling point: Climate change is one factor increasing the cost of living. Photo: Getty Images

How do rising costs impact internationals?

The cost of living crisis is having a significant effect on the mental health of internationals. Research by AXA – Global Healthcare, in the form of its Mind Health Index 2022 supports this idea.

Its research, conducted prior to the current crisis, indicated that 28 percent of non-native (international) participants rated their stress level between eight and 10 (out of 10), while 35 percent of non-natives said that financial stability was an issue causing stress. Thirty-nine percent of non-native participants believed that they faced an uncertain future when it comes to work and finances – a massive stressor, regardless of where you may be.

The causes of this are also clearly identifiable. Primarily, many internationals simply do not have the assets to sustain repeated price shocks in terms of food or energy costs. A survey conducted by market research firm, Finaccord, found that approximately three-quarters of internationals worldwide are individual workers – ie. depending on a single income.

A further third are also students, meaning that they are paying tuition costs while trying to support themselves, whether with a local job or payments from home. Quite simply, many internationals cannot afford to pay much more for necessities, particularly at a time when wages have stagnated.

Many internationals also lack the kind of support networks that would let them otherwise overcome economic turmoil. Earlier research by AXA revealed that 87 percent of participating internationals felt isolated and cut off from family and friends, who would otherwise be able to assist and share costs.

As a consequence, further research conducted in 2019 by AXA – Global Healthcare revealed that one in five participating internationals would return home should prices continue to rise – even though over 50 percent reported that they enjoyed a better salary and quality of life than they did at home.

The research also discovered that housing and tuition costs comprised the hardest financial pressures for internationals – with 51 percent identifying rent and housing costs, and 40 percent identifying education as more costly than expected.

It could be stated, therefore, that prior to the global spike in the cost of living, internationals already found themselves in a tight spot, with the threat of having to return home looming over them. Now, with skyrocketing prices, excessive and prolonged stress is an even greater contributor to a range of illnesses.

Internationals are more prone to sudden increases in costs of living. Discover how AXA’s health insurance options can ensure some certainty

Securing an international future

Moving abroad to start a new life is a costly endeavour and one that many work for years to achieve. It’s worth it, however: the experience of working or studying abroad is suggested to have a number of economic and lifestyle benefits.

That said, navigating the financial stresses of rising costs can be challenging.

Many internationals opt to offset the challenges of rising costs with comprehensive health insurance coverage. AXA – Global Healthcare’s research shows that a quarter of internationals worry about the cost of healthcare in their new home, and would even travel abroad to seek treatment.

Depending on where you are, unforeseen medical costs can run into the tens of thousands, meaning the difference between getting by, and having to return to your home country.

If you’re seeking a health insurance provider that offers comprehensive coverage and a range of useful benefits, you may want to consider AXA – Global Healthcare. Operating globally, the company has over 55 years of experience in covering those living and working abroad¹.

AXA – Global Healthcare policyholders get 24-7 care from personal advisors, connecting them with excellent private healthcare from a worldwide network of doctors, surgeons and specialists.

Outside of emergency care, AXA – Global Healthcare provides a number of additional benefits. Policyholders are able to access a number of annual check ups. Special care is available to those diagnosed with cancer, and mental health issues aren’t ignored – the AXA – Global Healthcare Mind Health Service¹ means that you have professionals for support wherever you may be.

As an international, dealing with the rising costs of living can be difficult. However, you can ensure that should something happen to you, you can avoid unexpected financial burdens.

Furthermore, with AXA – Global Healthcare’s range of additional services, you can make sure health problems are identified before they become a problem, allowing you to focus on living, working and enjoying life abroad.

Find out more about AXA’s Virtual Doctor service, mental health support and other services offered so you can enjoy life abroad with the knowledge that you’re fully covered

¹AXA has been providing International Private Medical Insurance for over 55 years

²The Mind Health Service is provided by Teladoc Health,

AXA Global Healthcare (EU) Limited. Registered in Ireland number 630468. Registered Office: Wolfe Tone House, Wolfe Tone Street, Dublin 1. AXA Global Healthcare (EU) Limited is regulated by the Central Bank of Ireland.

AXA Global Healthcare (UK) Limited. Registered in England (No. 03039521). Registered Office: 20 Gracechurch Street, London, EC3V 0BG, United Kingdom. AXA Global Healthcare (UK) Limited is authorised and regulated in the UK by the Financial Conduct Authority.

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Explained: How dangerous are French heatwaves?

A recent report highlighted the potential risks to athletes’ health if this summer’s Paris Olympic and Paralympic Games take place during a heatwave. The report, backed by climate scientists and athletes, warned of the potentially fatal risks of high temperatures at this year’s Games.

While most people are unlikely to be trying to break a 100m record during a heatwave – or any other time in fact – high temperatures bring with them serious risks to health.

Mercury rising

Any temperatures in France are getting higher, the country has endured a series of record heatwaves in recent years.

The all-time temperature record for Paris is 42.6C, set during a heatwave in 2019. It’s entirely possible this record won’t last long – 2022 was the hottest year on record in France, with a record 33 days meeting officially defined heatwave conditions: five in June and 14 in both July and August.

Vérargues, in the southern Hérault département, holds the highest recorded temperature in France – 46C set on June 28th, 2019.

The highest national average temperatures in France were recorded later in the year: August 5th, 2003, saw an average national temperature of 29.47C, followed by July 25th, 2019, when the average daily temperature was 29.4C.

And remember – air conditioning is not standard in French homes.

Health risks

There is no question that heatwaves can be fatal – some 400 people died in France in a two-week heatwave in August 2023 when new local temperature records were set around the country, according to public health data.

Over the whole of last summer, some 5,000 excess deaths were recorded between June 1st and September 15th, 2023, of which 1,500 were attributed to the heat.

Over the same period, nearly 20,000 heat-related emergency calls were recorded, according to a report by Santé Publique France published in February this year, and 10,600 additional hospitalisations followed a visit to the emergency department during periods of high temperature.

The risk is highest among the elderly or people with chronic health conditions, but also at risk are outdoor workers and people exercising – including hiking – during the hottest part of the day.

The government issues weather warnings – ranging from yellow (be aware) to red (potential risk to life) during heatwaves and we would strongly advise people to take notice and follow the advice, even if you come from a hot country.

Climate trends

And it seems that the situation is not going to get better soon, even if the response has improved.

“By the end of the century, heatwaves will be more frequent, more intense, and spread over a period from May to October,” warned France’s Haut Conseil pour le climat (High Council for the Climate) in a report in 2021.

Around 80 percent of the French population will experience 16 to 29 abnormally hot days each year over the three decades to come, as climate change takes hold according to a 2022 study by national statistics institute Insee – with Auvergne-Rhône-Alpes, Bourgogne-Franche-Comté and Occitanie the most affected regions.

It estimates that more than 9 million people will have to endure more than 20 extremely hot days each year in the years to come. Nighttime temperatures will also rise, with some areas seeing up to 19 abnormally hot nights each year, compared to seven between 1976 and 2005.

The phenomenon of ‘tropical nights’ – where the temperature does not drop below 23C even at night – is linked to sleepless nights and heat stress, as the body does not get the chance to cool itself.

Meanwhile, Santé Publique France’s figures underline the impact of high temperatures during heatwaves, it said, and confirmed the need for measures throughout the country, and for a reinforced strategy of adaptation to climate change, to reduce the impact of heat on health.

The unusual Pentecôte public holiday in France, when many people work ‘for free’ by donating that day’s salary a government ‘solidarity fund’ for the elderly, was introduced in 2005 following the disastrous 2003 heatwave, when more than 15,000 French people, most of them elderly, died in the sweltering temperatures.

Heat islands

The particular problem with Paris – and other major conurbations – is that it is a noted ‘urban heat island’, where temperatures can be up to 10C warmer than in the surrounding countryside, due to a combination of human activities, concrete surfaces that reflect heat, and heat pollution such as air conditioning units and cars.

The phenomenon also leads to significantly warmer nighttime temperatures, as heat accumulates during the day but cannot escape in the same way it might in a less dense environment – making for sticky nights that make it hard to sleep and increase the effects of heat stress, especially among the elderly or ill.

Emergency plans

One thing that has improved in recent years is how France deals with its heatwaves.

After 2003’s fatal summer, the French government introduced new protocols to protect the public whenever the temperature rises above a certain threshold.

Today, when the temperature soars, the government issues health advice on staying safe, which includes: drinking plenty of water to stay hydrated, staying indoors during the hottest part of the day (afternoon and early evening), keeping in the shade, exercising only during the coolest parts of the day (early morning and late nights) and eating regular meals.

Most cities now have heatwave plans. Parks stay open at night and ‘cool rooms’ open up to give those in at-risk groups a chance to be taken somewhere they can cool down.

Fire risk

Extreme temperatures and long periods without rain also increase the risk of wildfires.

The year 2022 was the worst on record for wildfires in France. In total 72,000 hectares, or an area seven times the size of Paris, burned over the summer.

Overall, 90 percent of fires are caused by humans – either deliberately or accidentally. But while casually throwing away a cigarette is objectively dumb, heatwaves can – and do – increase the risk of fires.

Where weather conditions do have a major effect is in turning what would perhaps have been a containable fire into a wildfire that devours thousands of hectares of ground and prompt evacuations.

High temperatures make it more likely that fires will start, but drought conditions cause these fires to spread – parched vegetation with no moisture catches extremely easily. In the height of summer, large parts of the south of France are particularly at risk of wildfires.

This is far from a new phenomenon. It’s why there has always been a wildfire ‘season’ in the hottest months of the year and why wildfires are much less common – though not unheard of – in winter.

In October 1970, 11 people died in a wildfire near France’s far southeastern border with Italy and in 1985 an inferno in the same area killed five volunteer firefighters.

Deaths are more unusual today, thanks to improved techniques and technology, but the fires themselves are getting more common, bigger and occur over a wider geographical area.

Poor air quality resulting from wildfire smoke can be a serious health risk to those with respiratory conditions.

If you live in an area where wildfires are common, make sure you sign up to the government emergency text alert system so you get the latest advice on whether you need to evacuate. You can also keep track of the risk of wildfire in your area by checking the government’s forest fire map, which is updated daily.

And you have legal obligations, too, relating to keeping your property as clear as possible of fire hazards during key wildfire periods.

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