More than half (54 percent) of high-net-worth individuals (HNWIs) are concerned that they are underinsured, with many worried their coverage is inadequate for their needs, according to new research published by Chubb.
Despite this concern, out of 500 HNWIs surveyed in the UK, Ireland and France, only 30 percent look for insurers or brokers that are experts in high-net-worth insurance and only 19 percent buy from a specialist broker, according to Chubb’s research, which is detailed in its report, titled “Towards tomorrow’s high-net-worth insurance proposition.”
Findings of Chubb’s research suggest that HNWIs look for service excellence in their insurance cover, identifying three main “pillars” of what high-quality service looks like:
- “Platinum” support: When it comes to service, respondents list strong relationship management with a single named point of contact (63 percent), a high level of responsiveness (63 percent), and willingness from insurers and brokers to go the extra mile (53 percent) as their top priorities.
- Specialist touch: HNWIs are looking for insurance cover that addresses their unusual lifestyle and atypical possessions. Specifically, they prioritize high-end appraisal and valuation services (58 percent), specialist understanding of the “HNWI experience” (52 percent), and expert knowledge of the valuable items collected by many HNWIs (51 percent).
- Superior claims-handling experience: A fair, expert and pain-free claims-handling service is a major factor for HNWIs looking for insurance cover, and 59 percent specifically seek a provider with a good reputation for claims handling.
The research paints a largely positive picture for insurance brokers and carriers, with 68 percent having confidence in their insurance provider and their level of expertise. At the same time, HNWIs expect carriers to invest more in an omnichannel communications approach that focuses on online (42 percent), phone (40 percent) and mobile (34 percent) channels.
“The findings of our research underline the need for brokers and carriers alike to develop an even stronger service proposition for their private clients,” said Jeremy Miles, senior vice president, Personal Risk Services, for Chubb in Europe.
“If they are unable to give HNWIs complete peace of mind, there are others in the industry who will gladly step up,” added Miles.
The HNWIs report was produced by Chubb in collaboration with Longitude Research. An online survey was conducted of 503 HNWIs from the UK, France and Ireland. All respondents had overall net worth exceeding £1 million (excluding property), and 35 percent had overall net worth exceeding £5 million. Chubb was not identified as the research sponsor. In addition, “qualitative interviews” were conducted over the telephone with a range of brokers and HNWIs. In this instance, Chubb was identified as the research sponsor.
The full report can be found on Chubb’s website.