Almost three-quarters of brokers think being underinsured is a problem for their high-net-worth clients, according to new research by Ecclesiastical.
Data gathered from 100 brokers with business with high-net-worth private clients has revealed that 72% of brokers believe that being underinsured is a major problem their high-net-worth clients face, and that underinsurance is a bigger risk (30%) for them than burglary or theft (20%).
Ecclesiastical pointed out that the pandemic, rising inflation, and supply shortages have all informed the increase in value of luxury items such as high-end watches. High-net-worth clients who may not have realised their current values may find themselves underinsured if the worst were to happen and they needed to purchase a replacement.
While underinsurance has always been an issue in the high-net-worth sector, Ecclesiastical director for art and private client business Sarah Willoughby pointed out that it has become especially important to keep valuations updated “against a backdrop of rising inflation”.
“As inflation and the cost-of-living soars, the prices and values of many precious items are also increasing rapidly,” said Willoughby. “While high-net-worth clients may have existing valuations, these can quickly get out of date. Underinsurance continues to be a key issue facing high net worth clients and our latest research has found brokers believe it’s an even larger risk than theft or burglary.”
Ecclesiastical has launched an enhanced, high-net-worth insurance product which includes cyber damage, cybercrime, and online liability cover, with optional additional covers including business cover and travel insurance. The enhanced art and private client policy has replaced the insurer’s existing product for new business and renewals since September 12.
