Looking ahead, high-net-worth individuals will need to look to alternative risk-transfer solutions and take part in risk mitigation to get insurance coverage, according to brokerage Hub International.
A recent HUB survey of HNW individuals and advisors found more are worried about safety, and 69% of respondents said they faced challenges getting sufficient property insurance in the past year. Just 31% said they are willing to accept greater financial risk to lower insurance costs.
“Affluent families are facing a perfect storm of rising insurance costs, a shrinking availability of coverage, and an increasingly complex risk environment,” said Katherine Frattarola, head of HUB Private Client, in a statement.” “The evolving complexity includes vulnerabilities associated with lifestyle, safety and security, and they will play a greater role as we look towards the future.”
HUB said many HNW families are already engaged in some form of self-insurance, and a small but growing number are taking the risky step to fully self-insure, especially as carriers scale back coverage in catastrophe-probe areas. The problem, HUB said, is these families miss out services offered by many HNW insurance carriers.
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