Insurance providers ‘need to go further’ to understand needs of high net worth individuals: Chubb

More than 50% of high net worth individual responding to a recent survey said they were worried about being underinsured, but fewer than one in five look for insurance providers that are experts in the field, Chubb Ltd. suggested in a report announced Tuesday.

“More than half (54%) of high-net-worth individuals are concerned that they are underinsured, with many worried they are buying insurance that may be inadequate for their needs,” Chubb said in a press release.

In a report titled Towards Tomorrow’s High-Net-Worth Insurance Proposition, Zurich-based Chubb detailed some results from an online survey of 503 high net worth individuals in Britain, Ireland and France.

Less than a third, or 30%, of respondents “look for insurers or brokers that are experts in high-net worth insurance,” reported Chubb, known until 2016 as ACE Ltd., when ACE completed its acquisition of The Chubb Corp.

Fewer than one in five (19%) of respondents buy from a specialist broker, Chubb reported.

All respondents had a net worth, not including property, of £1 million or more.

More (85%) of respondents had net worth of more than £1.5 million. The British pound closed Monday at $1.64.

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“Insurance brokers and carriers need to go further to understand their client’s unique risk profiles and provide more agile solutions that help their clients to quickly identify and fill any gaps in cover,” Chubb said in the report. More than three-quarters (77%) of respondents invested in art, 73% invested in watches, 69% invested in jewellery and precious metals or stones, 63% invested in antiques, 62% invested in luxury handbags, 60% invested in wine, 57% invested in classic cars and motorcycles while 57% invested in high-value supercars.

Survey respondents “expect carriers to invest more in an omnichannel communications approach that focuses on online (42%), phone (40%) and mobile (34%) channels,” Chubb said.

More than half (51%) of respondents place a priority on expert knowledge of valuable items that they collect, while 58% place a priority on high-end appraisal and valuation services.

“The findings of our research underline the need for brokers and carriers alike to develop an even stronger service proposition for their private clients,” stated 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.”