The global elite have become slightly less exclusionary.
According to the latest World Wealth Report, the international population of High Net Worth Individuals has reached a new peak with the creation of one million new millionaires in 2014.
This emerging demographic creates an abundance of opportunities for brokers, as growing prosperity at home and abroad leads to heightened demand for high net worth coverage. First, however,
“Our independent agent network has many different ways in which they try to get at this growing wealth,” said Scott Teller, worldwide signature underwriting manager at
Chubb. “They build relationships with different centers of influence that would direct this business into the independent agency network.”
He advises brokers to enter strategic partnerships with other financial professionals whose opinions are influential among these target prospects.
“Wealth managers are primary,” he said. “As people come into wealth, especially through the sale of a business or other liquidity event, they work with wealth managers who can then connect them to different brokers or insurance producers.”
In addition, he recommends collaborating with financial advisors who specialize in real estate transactions and tax wealth transfers, as they can also direct potential clients to independent agencies.
Once brokers establish contact with HNWIs, they should fine-tune their selling approach to reflect the needs and priorities of these prospects.
“We train producers through our Certified Advisor of Personal Insurance (CAPI) designation through a partnership we have with Wharton where we educate producers to be certified advisors for wealthy people,” Teller said.
This year-long program is designed to teach brokers to “better understand the risk management and insurance needs” of HNWIs. It covers such modules as the HNW mindset, building client relationships and customizing insurance solutions, as well as supplemental courses in collections (art, jewelry, wine, etc.) and family security.
“CAPI really helps us become a differentiator because when you have multiple people competing for someone’s attention, whoever is more educated and demonstrates a bigger passion and interest will stand out.”
Finally, Teller recommends that brokers emphasize the product offerings that are most pertinent for clients in this market.
“If I were to look at what’s most important for individuals whose wealth is growing, it would be making sure they have proper limited liability,” said Teller. “Depending on where they are, but certainly in our litigious environment in North America people should have limits that keep up with growth and wealth – that should be a primary focus.”
Coverage options for HNWIs’ tangible assets should also be a main discussion point during this dialogue.
“They should also have an insurance company that understands their assets, which could be the types of homes that they own, or any passions they may have around collecting jewelry, fine art, collector cars or wine,” he said. “They want to deal with carriers that have expertise with contract language and infrastructure that supports it.”
