The high net worth (HNW) insurance market is a lucrative and rapidly growing segment of the insurance industry. Although the percentage of HNW clients continues to grow, approximately 70 percent of HNW individuals have coverage in standard markets. They are often underinsured or have inadequate coverage with carriers who are not familiar with the affluent marketplace. In today’s market, Celebrities, professional athletes and those who inherit trust funds are not the only clients who have a high net worth and require specific coverage. Generally, HNW clients have homes valued at $750,000 or above and a net worth of $5 million or more.
Becoming an expert in this area requires dedication and time. HNW coverage is not as simple as one phone conversation. Insurance agents who work with these clients must build and maintain relationships and networks. HNW clients should not be considered large personal lines accounts, because they are often complex and require regular and thorough reviews of exposures. HNW exposures may actually more closely resemble commercial exposures, as both may need to insure multiple locations, in-home employees and non-profit activities.
The HNW individual has many unique exposures that come with their lifestyle, and those exposures need to be protected. These exposures can come in many forms such as fine art collections, luxury and vacation homes, private aircraft, specialty automobiles, exotic sports cars, jewelry, and more. Also, increased wealth and assets increases your personal liability exposures. Annual risk assessments are imperative to secure details about net worth, assets, collections and new acquisitions. Brokers who work in this market should work with trusted specialty insurance carriers to tailor coverage in order to meet clients’ needs. Advantage Partners Network understands the specific needs of the high net worth client. We have relationships with premier insurance companies who serve this market, and we will work together with agents to offer a comprehensive insurance and risk management program.