Hub International Limited has published the 2025 HUB Outlook High Net Worth Survey, showing a shifting and evolving risk landscape for affluent individuals and families, some of whom say sufficient coverage for their risks is increasingly more expensive and sometimes unavailable.
“Affluent families are facing a perfect storm of rising insurance costs, shrinking availability of coverage and an increasingly complex risk environment,” says executive vice president and head of HUB Private Client, Katherine Frattarola.
The report recommends engaging younger family members in discussions about risk management and financial planning. It also suggests families implement practical measures to reduce risk, such as wildfire resistant landscaping, water sensors and cybersecurity measures. The report also suggests high net worth (HNW) clients explore alternative insurance solutions with the guidance of a knowledgeable risk advisor.
“With traditional insurance coverage continuing to become more expensive and less easily available, a more proactive approach to risk management will be required,” they state. “Affluent families will need to be increasingly cognizant of potential risks in their lives and take proactive steps to safeguard their loved ones, assets, personal data and financial security.”
Managing risk exposures
They add that families need to be vigorously engaged in managing their risk exposures. “This will require more frequent, wider-ranging discussion with their risk advisors.”
As for general liability, they say social inflation is driving liability claims faster than can be explained by economic factors. In the United States it has contributed to a 57 per cent rise in settlements over the past 10 years. They say 53 per cent of HNW respondents to the HUB survey felt they had adequate liability coverage, yet a significant number did not have umbrella liability coverage which covers their net worth. This, they say, makes it essential for these clients to review policies and limits with risk advisors annually.
