This September, investment manager Jeffrey Gundlach had $10 million worth of art stolen from his Santa Monica (CA) home.
Gundlach’s collection was eventually recovered. Nonetheless, this incident brings to light an unwavering truth about high-net-worth clients: They require a myriad of insurance coverages including equine mortality, kidnap and ransom, excess flood, yacht and, of course, art. In other words, the affluent marketplace is best sold as a package.
You can capitalize on this bundling opportunity. The challenge is every broker and agent wants high net worth clients. In fact, many may already have some of them on the books. But because high net worth clients often keep a low profile, they can be difficult to spot, even when they are right under your nose.
When pursuing the affluent, here are a few things you should know:
- Identify high-net-worth clients by looking within your agency for your business owners and C-level executives. Cross-selling with a commercial insurance colleague gives agents the opportunity to solidify business and insulate relationships.
- The higher the net worth of a dwelling, the greater the risk. What agents do not often realize, however, is that the policy should offer insureds “all-risk” without depreciation in coverage.
- Sell coverage, not premium. If brokers and agents are shopping price for a high net worth client, they are doing them a disservice. Burns & Wilcox’s Elite Client Solutions program can help underwrite the total package; if it does not all fit with one carrier, we will find a bundled solution to make it work.
- The collecting tastes of many high net worth clients are shifting. Burns & Wilcox has access to all the major high net worth carriers, both admitted and non-admitted, so we have plenty of options in terms of coverage.
- There is a very blurry line between business owners’ professional and personal lives when it comes to what is on their or their family’s computers. Burns & Wilcox offers a risk management product called IDMELive through which clients can purchase insurance for fully managed identity theft fraud claims and Internet monitoring
Nowadays, High Net Worth Coverage can be complex, given all the variables. So it’s important for brokers and agents to discuss the client’s needs thoroughly and partner with a high-net-worth personal insurance professional to ensure their clients are protected.