Underinsurance is a concern for more than half (54%) of high-net-worth-individuals (HNWIs), new research by insurance firm
Chubb has revealed. And yet, less than a third (30%) look for insurers or brokers that are experts in high-net-worth insurance, while fewer than a fifth (19%) buy from a specialist broker.
According to its survey of more than 500 HNWIs from the UK, France, and Ireland, many are worried they are buying insurance that may be inadequate for their needs.
“This underlines the need for brokers and carriers alike to develop an even stronger service proposition for their private clients,” said Jeremy Miles, Chubb senior vice president personal risk services, Europe.
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“If they are unable to give HNWIs complete peace of mind, there are others in the industry that will gladly step up.”
All respondents had overall net worth (not including property) exceeding £1 million, and 35% had overall net worth exceeding £5 million.
When it comes to service, the survey found that HNWIs’ top three priorities are:
- A strong relationship management with a single named point of contact (63%)
- A high level of responsiveness (63%)
- A willingness from insurers and brokers to go the extra mile (53%) as their top priorities
The report said some HNWIs may be influenced by the service they get from other industries.
“If they receive a good service from an accountant but not from the insurance industry, they might assume that the accountant is providing better service – even though they’re providing different products and advice,” the report explained.
HNWIs are looking for insurance cover that addresses their “unusual lifestyle” and atypical possessions, the research said. They prioritise high-end appraisal and valuation services (58%), specialist understanding of the “HNWI experience” (52%), and expert knowledge of the valuable items collected by many HNWIs (51%).
“We need to understand not just theft and fire, but also conservation. Our clients want to know that we’re doing as much as possible to protect their possessions,” said Steve Wilkinson, risk consultant manager for Chubb’s Personal Risk Services.
Nearly six in 10 (59%) seek a provider with a good reputation for claims handling, as a fair, expert and “pain-free” claims-handling service is a major factor for HNWIs looking for insurance cover.
“The ultimate test of an insurance policy is at the time of a claim,” said Jalil Rehman, executive vice president and chief business operations officer, Europe. “If you don’t deliver when the time comes, then whatever promises you make are worthless.”
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