Obtaining insurance rates for luxury assets just got easier!

By Kurt Thoennessen, CAPI

There are many solutions to insure luxury assets in the insurance market today. This fact makes deciding which one to select overwhelming.

So how do you decide what is right for you?

  • Choose the fastest
  • Choose the cheapest
  • Choose the most expensive and assume it is the best
  • Go online
  • Call an 800 number
  • Ask for a recommendation

The problem is most high net worth individuals are choosing one of these options and end up overpaying, underinsured, and poorly served.

High net worth individuals have complex lifestyles that include purchasing high value homes, collecting art, volunteering on boards, throwing lavish parties and employing domestic staff. These and other factors require more than a generalized knowledge of how insurance works. They require expert knowledge to place the proper contracts, react to intricate service needs, handle claims tactfully, and provide quality advice.

Choosing an Advisor

Most high net worth individuals recognize they are underinsured and would prefer to work with a specialist, but have difficulty identifying the right advisor. This is demonstrated by the findings of a survey done by ACE insurance company. The survey revealed that more than 80% of high net worth clients were underinsured by their previous mass market insurers. This is most likely an indication that they were not working with an expert advisor.

Today, insurance companies are making it easier for owners of luxury assets to connect with high net worth insurance experts by providing educational certifications for top advisors.  For example, Chubb Insurance, a leader in the high net worth insurance market, created a unique educational program focused on insurance for high net worth individuals. This program was created in conjunction with the Aresty School of Executive Education at the Wharton School. Each graduate of this program receives the CAPI (Certified Advisor of Personal Insurance) designation, which will help wealthy individuals pinpoint these professionals as experts in high net worth insurance.

Finding the Time

Beyond finding the right advisor, finding the time and motivation to engage in the redesign of an extensive program of personal insurance can be daunting. A busy schedule can prevent many people from starting the process, even if they have an expert advisor to work with. Here is a snapshot of what the typical review and quote process may look like.

  • Data gathering and needs analysis accomplished through meetings, phone calls, and email exchanges
  • Waiting for a proposal
  • Meeting, phone call or email exchange to discuss the proposal
  • Customization and decision

In a world where texting has become the preferred medium of communication and online shopping has proliferated, it is easy to understand why a simpler process will be more effective.

Eliminating Challenges

Ericson Insurance Advisors is acutely aware of these challenges and has developed a new website to assist high net worth individuals in eliminating them. The site, InsureScope.com, was built to simplify the insurance review process for the luxury insurance market and help ensure that high net worth individuals are served exclusively by expert advisors. It offers 24/7 access to specialized quick quote forms as well as a complimentary 60-second risk assessment to identify areas of overpayment and/or underinsurance. Advisors are also available for phone consultations as needed.  Ericson believes InsureScope.com will significantly reduce the time needed to complete an insurance review while delivering improved insurance protection and reduced costs for high net worth individuals.

Source:
High net worth insurance survey results from ACE Private Risk Services – Wealth at Risk: How High Net Worth Families Overpay to Be Underinsured.

 

About the Author

Kurt is a Senior Advisor with InsureScope and a Certified Advisor of Personal Insurance (CAPI). He works with high net worth individuals and families to design and implement risk management and insurance programs. Kurt can be reached at (203) 405-2645 or kthoennessen@ericsoninsurance.com.