By Brittney Meredith-Miller | January 09, 2024 at 12:07 AM
According to data from the Federal Reserve, the number of U.S. households with net assets over $1 million grew 63% from 2019 to 2022. Canada has also seen a significant increase in millionaires, with their numbers increasing 23% in 2021 alone, according to Credit Suisse. This means there are now more millionaires in North America than ever before, and with increased wealth comes increased risk. For Chubb's inaugural Wealth Report, released in December, researchers surveyed 800 individuals in the U.S. and Canada who had investable assets of at least $500,000; although the majority of respondents (79%) reported assets between $1.5 million and $50 million. Some of the most prevalent concerns about risk held by the respondents were the possibility of damage to their property from weather-related events or climate change, protecting their fine art and collectibles, and being targeted in liability lawsuits. While 92% of respondents told Chubb they are concerned about the size of a verdict against them if they were to find themselves as a defendant in a liability case, only 36% report having excess liability insurance. Around 80% of respondents said they collect valuable items like fine art, jewelry, wine and cars, but some of these collectors may be leaving themselves exposed to risk by not having these items property protected. This may be especially true for younger investors, as the report notes: "Many young collectors own valuable articles and assets before they buy their first house, and may not think about insuring those items – this creates a challenge for insurers to find new ways to establish a relationship with them." Despite the growing complexity of risks affecting their investments, Chubb uncovered that a great number of wealthy people are relying on financial advisors/wealth managers (73%) or their own knowledge (71%) to manage their wealth and protect it from risk. Only 59% said they rely on an insurance agent or broker for these services. So, what can insurance agents and brokers do to draw in these wealthy clients and best serve them? In the slideshow above, we'll look at what Chubb's Wealth Report identified as the top things wealthy clients want from their insurers.
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Brittney Meredith-Miller
Brittney Meredith-Miller is assistant editor of PropertyCasualty360.com. She can be reached at [emailprotected].
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