Explore the nuances of insurance for High-Net-Worth individuals with Prevail.

High-Net-Worth (HNW) clients have distinct insurance needs due to the nature and the value of their assets.

They can possess unique items that are rare, expensive, or hold significant historical or sentimental value. Furthermore, many such clients manage their wealth through family trusts and other complex ownership structures, which require a sophisticated approach to insurance placement.

Daniel Hrycko, Production Underwriting Team Lead at Prevail, stresses the importance of tailored coverage and risk management for HNW clients, avoiding price-driven decisions.

"HNW insurance placement requires the right policy, and while cost is always a consideration, it cannot always be the driver," he says.

"Brokers will better meet the unique needs of HNW individuals when they become a trusted risk advisor. Building strong relationships is vital, so you can guide clients through the complexities of risk management and asset protection."

Five tips for better insurance outcomes

Here are some top tips to help brokers provide risk management and asset protection advice to HNW clients, supporting them to access the right policy at the right price.

1. Conducting regular valuations for collections

For HNW clients, regular valuations of their collections – whether it's art, jewellery, or prestige cars – are key, as they can fluctuate in value. By proactively managing and updating valuations, brokers can ensure that the value of these collections are appropriately covered by the insurance policy.

"When it comes to collections, replacement can be a challenge if that collection is compromised," Daniel says. "Adequate protection is key, as it means the client can at least start building a similar collection if they can't acquire the exact items."

2. Focus on risk mitigation appropriate to your clients' lifestyle

Mitigating risks associated with valuable assets requires a specific and multi-faceted approach.

Brokers need to look at the big picture, for HNW clients, considering their lifestyle and narrowing in on specific risks to provide appropriate advice.

"Recommendations might include measures such as climate-controlled environments for art collections, and secure safes for jewellery. It may also include comprehensive physical security measures or offsite storage solutions," Daniel says.

3. Promoting regular maintenance

Regular property maintenance is essential, as it can be incredibly expensive if something goes wrong at a HNW home.

By promoting consistent and proactive property maintenance, brokers can help their clients reduce the likelihood of something going wrong, such as a roof collapsing, or a basement flooding, Daniel says.

Implementing software solutions to track and manage maintenance schedules can streamline this process, also adding an extra layer of efficiency and accountability.

4. Advising security contractors

Investing in professional security services is another important recommendation for HNW clients.

This could include private security personnel, multi-path monitored alarm systems, and secure transport services for valuable items in transit.

5. Considering excesses

A common misconception is that everyone prefers low excesses on their insurance policies. However, this is not always the case. To better safeguard their home and assets, your HNW clients may be comfortable paying for higher excesses.

In some cases, higher excesses without compromising cover can be a strategic move. Higher excesses can often result in lower premiums, allowing clients to allocate resources toward other risk mitigation measures.

"Brokers should educate clients on the benefits of higher excesses, dispelling assumptions and providing tailored advice to align with their financial strategies and risk tolerance," Daniel says.

Specialised advice for your HNW clients

Placing insurance for high-net-worth clients involves more than just arranging coverage, it requires brokers to understand their clients' unique needs and a commitment to proactive, advisory-driven service.

For more advice, contact Prevail today at 1300 188 299 or via email at home@prevailinsurance.com.au.

 

This article is intended for insurance intermediaries only. The Prevail Elite Home Insurance product is issued and underwritten by QBE Insurance (Australia) Limited (ABN 78 003 191 035, AFSL 239545) (‘QBE’). Prevail Insurance Pty Ltd (ABN 15 096 726 895, AFSL 234437) (‘Prevail’) is authorised to distribute the Prevail Elite Home Insurance product, acting under its own AFSL, on behalf of QBE. Any advice provided is general only and has been prepared without taking into account your client’s objectives, financial situation or needs and may not be right for your client. To decide if this product is right for your client, your client should read the Prevail Elite Home Insurance Product Disclosure Statement (‘PDS’), Target Market Determination (‘TMD’) and Financial Services Guide (‘FSG’), which can be obtained by contacting Prevail on 1300 188 299 or visiting www.prevailinsurance.com.au.