What are the top concerns of high-net-worth individuals?

What are the top concerns of high-net-worth individuals? | Insurance Business America

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What are the top concerns of high-net-worth individuals?

New report underscores growing worries amid economic instability

Insurance News

By
Mika Pangilinan

High-net-worth (HNW) individuals in the US and Canada are worried about economic instability, climate-related property damage, and potential lawsuits, according to a new survey from Chubb.

In a poll of 800 wealthy Americans and Canadians, 66% of respondents said that building and safeguarding wealth are becoming increasingly challenging endeavours.

But even with these challenges, a significant portion of those polled (83%) has remained actively employed, with nearly one-third indicating a preference to continue working and never retire.

Among the top concerns identified by the Chubb survey revolve around the impacts of climate change on homes.

According to Chubb’s findings, 76% consider exposure to extreme weather as a major threat, while 63% are primarily worried about water-related damage caused by hurricanes and floods. As for 31% of respondents, these worries are further compounded by wildfires.

To protect their homes, 48% of respondents said they’ve installed whole-house generators and smoke detectors. Additionally, 49% have installed water-leak detection sensors and 22% have implemented wildfire mitigation measures.

HNW individuals also place prime importance on their collections, according to Chubb, with 80% of those polled considering themselves collectors of fine art, jewellery, cars, wines, and other valuables.

In relation to their collections, 87% expressed concern about art fraud and 86% said they are worried about damage during travel or transportation.

Another major concern among HNW individuals is liability risks are a significant worry.

The majority (90%) said they are concerned about the size of potential verdicts in liability lawsuits, while a little less than half (48%) believe their wealth makes them an enhanced target for lawsuits. Despite this, only 36% said they have excess liability coverage.

Auto liability risks also feature prominently in the survey findings, with 45% expressing concerns about accidentally hitting pedestrians and 40% worried about liability issues in automobile accidents causing bodily harm.

“The Wealth Report provides an insightful lens into the concerns and pressures the affluent are facing,” said Ana Robic, Chubb division president, North America personal risk services. “It shows a shift in how they value and invest their wealth, who they seek advice from to protect it and what keeps them up at night.”

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