Home & Legacy underwriting and markets director Adrian Ewington on why its an exciting time to be in high net worth insurance
At the Insurance Times High Net Worth Broking conference, Andrew Shirley of Knight Frank presented his research on the rise of the Ultra High Net Worth Individual (UHNWI).
With a more than 30% rise predicted in the number of UHNWIs globally and the UK expected to be a popular migration destination for 114,000 of them, it’s an exciting time to be in HNW insurance. Insurers and brokers have, of course, already recognised the growing opportunity in all tiers of the market. That’s clear by the 42% rise in providers between 2008 and 2012 that Defaqto has famously reported on.
At Home & Legacy, we responded to the rise in UHNWIs by launching Ultimate Home a few years ago to compete with the other products at the very top end of the HNW market.
‘Differentiation’ was a buzz word at the conference. Additional services brokers could offer to stand out from the crowd were suggested – from concierge to more risk management consultancy. Smart brokers will certainly make the most of opportunities that are relevant to their clients’ changing appetites – whatever they are.
As an insurance provider, when developing Ultimate Home, we concentrate on what brokers tell us helps them meet their clients’ needs – and right now that is excellent core cover. Not creating glamorous-sounding ‘lifestyle covers’, but, rather, ensuring core cover is robust enough to suit a client with an UHNW lifestyle. Generous liability and item limits, new acquisitions and market appreciation covers are things that matter.
As the next generation of customers emerge and their investment and purchasing options increase, it is even more important for brokers and insurance providers to work together closely to ensure products respond adequately to customer needs. Insurers will also always look at customer feedback, claims data and market trends to ensure products remain relevant and up to date.
We believe that advised service is hugely valued and while technology can be used to provide better access to service, it won’t replace personal contact on the more complex cases that we all know and love in HNW. These are the reasons why we value our broker relationships as much as ever and will continue to be the brokers’ HNW provider.