Huge congratulations to Emma Baird, (pictured below) who is a mortgage adviser at Campbell & McConnachie in Lossiemouth in Moray, Scotland who won the second Hotel Chocolat cabinet.
To win the third decadent chocolatey treat, (pictured) simply answer the question below relating to the following article and e-mail your answer (A, B, or C) to editors@ae3media.co.uk. The deadline for submissions is Tuesday 15 March. Good luck!
Q: Are true High Net Worth policies…
A: exclusion and warranty free
B: restrictive in wording
C: standard wordings – not bespoke
Not all high net worth (HNW) insurance is truly HNW. Let me explain. Most of the home insurance products you offer your HNW are actually standard home insurance policies which are simply amended to provide a higher sum insured. This is actually high value insurance. There are striking differences between the two that you need to be aware of.
With high value insurance, the policy wording is often designed for a standard risk and will contain certain exclusions and warranties. True HNW policies on the other hand, will more often be exclusion and warranty free. This means that restrictive standard clauses won’t be present. More importantly, HNW cover will be bespoke to each customer, with valuable items such as fine art, antiques, jewellery, cars, and other precious items being assessed prior to commencement of the insurance, and insured on an “agreed value” basis. The key to a true high net worth offering is personal service, bespoke high quality cover, and rapid resolution of claims.
According to the 2014 World Wealth Report, the population of HNW individuals in the UK is on the increase. Indeed, according to insurance industry data, they now account for around 20% of the population. Furthermore, 80% of these individuals don’t use a specialist insurer or broker. This means that a) many of your clients need this type of cover, and b) it is a valuable and largely untapped market.
These clients may be cash rich, but they’re also likely to be time poor. As a trusted adviser, it’s important to ensure that home insurance is one thing that they don’t need to worry about. And of course, they’ll more than likely have other personal and commercial interests that could also benefit from your trusted advice.
Comprehensive true HNW offerings are hard to find. Indeed, you may not until now have even realised that what you’re currently offering isn’t actually High Net Worth. Now that you know the difference, make sure you act on it, and give these valuable clients the service they genuinely deserve.
