High Net Worth Home Insurance 2016

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All the vital news, analysis, and commentary curated by our industry experts.


Wealthy individuals require specialist mid net worth (MNW) and high net worth (HNW) insurance policies that offer wider coverage, higher limits, and better service compared to standard products. This is due to the higher value of their assets, which may include multiple homes, luxury cars, yachts, antiques, jewelry, wine, and fine art. Home insurance is generally provided on a global all-risk cover basis, often with an element of legal protection and travel insurance to which motor insurance can be additionally added. The market is forecast to grow as the number of affluents in the UK increases. Insurers are trying to grow the market by expanding their customer base by increasing consumer awareness of specialist products, better targeting their products through partnerships, reducing underinsurance, and adapting their distribution strategies to consumer purchasing preferences. Brokers remain the main distribution channel, although MNW individuals are moving away from them in favor of purchasing directly and via banks online. The market is soft due to insurer overcapacity, which has driven down rates and profitability, although premiums are beginning to stabilize. Competition is also provided by insurers offering enhanced standard policies. Hiscox and Chubb account for the largest share of GWP; meanwhile the rest of the market is characterized by a range of specialist and composite insurers. In the future, technology will play a greater role in the market by improving insurer-broker-customer relationships and managing household risk.


• Hiscox and Chubb hold the largest share of the market.

• The market is low in profitability with an estimated COR of just under 100%.

• By 2020, the combined MNW and HNW market is forecast to be worth £1.3bn in GWP.

• MNW business is moving away from the broker channel.

Reasons to Buy

Adapt your distribution strategy to ensure it still meets the needs of clients.

Ensure you successfully market your products and target potential clients.

Benchmark yourself against other players in the market.

Be prepared for how technology will impact the HNW home insurance market over the next few years.

Oak Underwriting
Home & Legacy
Plum Underwriting
Bluefin Private Client Insurance
Arthur J Gallagher
Lark Group
Palladium Insurance
Smith Greenfi

Table of Contents

Executive Summary

The MNW and HNW home insurance market has potential to grow

Key findings

Critical success factors

The HNW Home Insurance Market


There is no standard definition of MNW and HNW individuals

Insurers define wealth differently to other financial services

Classifying MNW and HNW individuals is vital for product development and targeting

Home contents, rebuild cost, and premium price are used to classify home insurance

Client risks within the MNW and HNW space are diverse

Despite an incredibly diverse client market, products are undifferentiated

Some insurers believe client segmentation is the way forward for product targeting

The market for specialist household policies continues to grow

The MNW and HNW home insurance market is estimated to be worth £1bn in GWP

The number of affluents in the UK is growing

Not all wealthy households will have a specialist home insurance policy

The MNW and HNW home insurance market has potential to grow

Increasing the number of customers and premium price will grow the market

Identifying individuals in need of specialist home insurance is key to increasing penetration

Hiscox is the only insurer with a high-profile MNW home advertising campaign

Online channels could help identify customers who require specialist home insurance

Insurers are looking to develop partnerships to access HNW individuals

The market has softened due to overcapacity

Rates are beginning to stabilize but market profitability is still critically low

HNW individuals are loyal to their provider while MNW clients switch due to higher price sensitivity

Enhanced standard home insurance products are additional competition to the market

Underinsurance is a result of inadequate valuations and consumer attitudes to price


HNW individuals pay for service in addition to insurance

HNW clients’ insurance needs are treated as a whole

HNW providers are renowned for their service of quality and excellence

HNW clients have access to professional networks and helplines, adding extra value

HNW providers battle claims before loss occurs to streamline their service

HNW clients look to brokers due to the greater complexity of their insurance needs

MNW home insurance is moving online

Fewer MNW home insurance policies are purchased through a broker

Online purchasing is becoming popular with MNW individuals

Insurers are beginning to offer their products directly online

Brokers should digitize their purchasing journey to remain relevant

Partnerships with banks and wealth managers will help access potential customers

Competitive Dynamics

Chubb and Hiscox hold the biggest share of the MNW and HNW market

Chubb and Hiscox remain the largest underwriters in the market

Hiscox Private Client provides HNW customers with a personalized service

Chubb offers three Masterpiece policies with varying levels of cover

The remainder of the market is characterized by smaller insurers

Numerous different regional and national brokers exist in this market

Insurers have moved into the HNW space through acquisition

Specialist insurers have been acquired for their HNW business and brand reputation

Covea acquired Sterling to expand its offering to HNW clients

ACE has rebranded as Chubb after acquiring the insurer

RSA acquired Oak Underwriting to strengthen its HNW insurance offering

Home & Legacy offers a range of product cover levels across its entire portfolio

Plum Underwriting expanded its HNW business through the acquisition of Synergy

Insurers with main offerings focused on standard policies also offer HNW cover

Composite insurers want to provide an all-round product and client offering

Aviva upgrades its HNW Distinct division with the launch of Aviva Private Clients

AXA’s HNW home policy is provided through its specialist division for fine art cover

AIG has launched three new claims centers of excellence to increase efficiency

Zurich Private Clients offers insurance for HNW and UHNW individuals

Direct Line SELECT was launched for MNW customers in 2011

Ageas’ House Guard Prestige policy offers home insurance for MNW clients

MGAs have been targeting the HNW market

New MGA Horizon looks to simplify and modernize product distribution

Hyperion now offers HNW insurance through merger with RK Harrison

The Market Going Forward

The market will grow as affluence in the UK increases and rates harden

The MNW and HNW combined market is forecast to reach £1.3bn in GWP by 2020

The number of wealthy individuals in the UK will continue to grow

The number of specialist home insurance policies in force will increase

The market will grow as insurers raise premiums to improve profitability

Technology will be used to improve insurer-broker-customer relationships

MNW policies will be increasingly available to purchase directly online

The online channel will streamline product purchasing and claims settlement processes

Video and audio could be used to increase policy understanding

Digitally documenting high-value contents will help insurers manage client risks

Technology will play a future role in managing household risk and claims

Digital homes are becoming more popular

Installing water leak detection systems will reduce household claims and premium prices

Smart security will allow homes to be monitored even if they are unoccupied

Clients’ personal data needs to be protected as crime moves online

3D printing will repair or create replicas of lost or damaged contents


Abbreviations and acronyms




Composite insurer


Liquid assets (or liquid wealth)

London insurance market


MNW (or mass affluent)



Primary sources

Secondary sources


Further reading

About Verdict Financial



Table 1: Ways of categorizing MNW and HNW individuals

Table 2: Size of the UK MNW and HNW home insurance market in GWP (£m), 2010–15

Table 3: Number of UK affluents defined by onshore liquid wealth (000s), 2010–15

Table 4: Estimated number of MNW and HNW household policies (000s), 2010–15

Table 5: UK MNW and HNW home insurance market forecast in GWP (£m), 2015e–20f

Table 6: Forecast for the number of UK affluents (millions), 2015–20f

Table 7: Forecasted number of MNW and HNW household policies (000s), 2015–20f


Figure 1: The MNW and HNW home insurance market is growing

Figure 2: The number of UK affluents increased to 13.1 million in 2015

Figure 3: The number of MNW and HNW household policies is increasing

Figure 4: Hiscox’s advertising campaigns target MNW individuals

Figure 5: HNW insurers were ranked highly for providing the best broker service

Figure 6: The new Chubb logo is designed to represent the quality, service excellence, and diversity of the brand

Figure 7: The MNW and HNW home insurance market will continue to grow

Figure 8: The number of UK affluents is forecast to reach 16 million in 2020

Figure 9: The number of MNW and HNW household policies will increase

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