The high-net-worth market (HNW), also referred to as private clients’ insurance, is a specialist sector that is regularly impacted by changes seen in the wider insurance industry. It is important for HNW individuals to be aware of how these changes may influence their insurance requirements.
Trends sweeping the market
HNW property owners often opt for electricals of significant value including home cinemas and underfloor heating. Many will be fitted with hard-wired fire alarms that have early detection devices. This preventative measure has resulted in fewer fire incident claims.
Risks to property
HNW development projects are trending, such as the installation of home leisure facilities. Escape of water and flood claims are rising due to adverse weather conditions. Occasionally, alternative accommodation must be arranged for HNW individuals. These occurrences are proving to be a challenge, as landlords are hesitant to let properties short term.
Furthermore, inflation and other factors such as the war in Ukraine, exchange rates, shipping costs, and the post-pandemic economy are impacting the insurance market. HNW individuals are subject to the scarcity of materials which are typically found in HNW properties. HNW individuals typically own a higher number of listed buildings. Given the quality of specialist materials such as hardwood and increasing labour costs, associated expenses with owning listed buildings are expected to rise.
Market growth and policy coverage
Despite these challenges, HNW individuals are seeking more innovative products to satisfy their lifestyle choices. However, while the HNW market continues to grow, the significant gaps in policy coverage remain. And with indexation and premiums increasing, clients may consider alternative insurance arrange- ments or even self-insurance.
BHIB Insurance Brokers conducts assessments, which can include a home visit, to assess risks first-hand. Its specialists are available to discuss clients’ insurance needs and offer peace of mind as they navigate this ever-changing market.
Contact BHIB Insurance Brokers to discuss your insurance cover with a specialist. Call 01604 630003, email enquiries@bhibinsurance.co.uk or visit the website www.bhibinsurance.co.uk
