They can build a hurricane resistant enclosure to house a client's valuable art collection. When a client's home is threatened by a wildfire, they can swoop in to prevent damage. They can even help clients avoid being kidnapped.
Who are these guys?
They're the Private Client Group (PCG)-the high-end private insurance arm of the insurance giant known as AIG, but recently renamed AIU Holdings Ltd. PCG is in a niche market that services clients with large holdings, providing one of the few options for high-net-worth clients looking to protect art, jewelry and other property and wealth of immense value.
"What sets us apart is really the availability, as very few companies can sell the level of coverage successful individuals require," says Charles Williamson, the private Client Group's president.
The level of service provided by the Private Client Group is reflected in the premiums paid by their clients. The average total annual premium per customer, including multiple policies, is $20,000. The largest individual annual premium paid is $2.4 million.
Considering the type of property being insured, and the payouts involved if there are damages or losses, these premiums can be well worth it, according to insurance specialists.
"What
was good for the Chevy for years just isn't good enough now that you
have a Benz," says Craig Stoker, president of Stoker Financial
Services, an independent insurance brokerage in Sacramento, Calif.
Even still, many high-net-worth families neglect their insurance needs, he says.
"They
think, my insurance with a mass-market insurer has been fine. But a
high-end insurer like AIG pays the replacement costs, not just the
stated value of the home," Stoker says. "Wait until the first big,
complicated claim.
Then they realize why they needed specialized coverage."
The Private Client Group counts as its clients between 30% and 40% of the Forbes "Richest Americans" list. Among its specialties is the insuring of high-end homes, automobiles, art and wine collections, musical instruments, yachts and an array of miscellaneous items. But the insurance policies extend beyond just property. The company also devotes much of its business to protecting its wealthy clients against lawsuits. The Private Client Group, for example, has attorneys who specialize in employment practices liability-cases in which clients are sued by their hired staff.
The Private Client Group fills a niche on the upper rungs of the insurance market. Individuals and families with assets north of $5 million can't just call up a conventional insurance company and purchase coverage, experts say.