• Obtaining package discounts: 62% say the rich don’t take full advantage of reductions for purchasing multiple policies from a single carrier.
• Applying loss prevention credits: 50% believe that the affluent overlook adjustments for safety devices such as burglar alarms and water leak detection systems.
The study also cited the most frequently neglected types of insurance:
• Umbrella liability: 92% of agents note insufficient liability coverage, despite 82% of families saying their wealth alone makes them likely targets for lawsuits.
• Uninsured and underinsured liability: 86% report well-off families lack adequate coverage, should they suffer serious harm by someone else with no (or insufficient) insurance, or inadequate assets to meet liability obligations.
• Valuables coverage: 86% cite incomplete coverage for high-priced jewelry, fine art, expensive wine, classic cars and other big-ticket collectibles.
• Home structure coverage: 83% believe families have insufficient coverage for their posh homes, even though primary and secondary residences can make up the biggest portion of a family’s net worth.
Appropriate protection doesn’t necessarily cost more. In fact, 51 percent of agents surveyed say they can typically lower premiums at least 5 percent by shifting clients from mass-market policies to high-net-worth policies and reevaluating clients’ overall insurance needs, according to ACE.
Further information about the study is available at www.acegroup.com/us-en/individuals-families/ace-prs.aspx.