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Chubb's 2024 Wealth Report: Emerging Risks for the Wealthy

As the world faces unprecedented challenges, Chubb’s 2024 Wealth Report sheds light on how wealthy households are navigating new threats to their wealth. This report, titled "Cultivating Resilience in a Changing Landscape," surveyed affluent North Americans, primarily those with significant assets, revealing that concerns regarding climate change, cyber threats, and the safety of valuable collections are top of mind for this demographic.

Key Findings from the Report

Climate Change as a Leading Concern

The survey highlights that 90% of high-net-worth individuals cite climate change as a primary concern—an increase of nearly 20% compared to the previous year. A staggering 53% express being greatly worried by its potential impacts. In response to climate-related concerns, 86% of wealthy homeowners are planning increased investments in home improvements over the next year, with 80% aiming to incorporate sustainable features.

"The recent intensification of climate events is compelling affluent families to reconsider their strategies for protecting their properties," noted Jennifer Naughton, Chubb's Executive Vice President and Risk Consulting Officer.

Cybersecurity Threats Gaining Prominence

The digital lives of affluent families expose them to unique vulnerabilities, pushing cybersecurity to the forefront. Identity theft is a worry for 56% of respondents, with cyberbullying also at 55%. The findings indicate a direct correlation between wealth and cyber-targeting, with one in six households having assets over $25 million reporting cyberattack victimization.

Valuables and Collectibles: A Major Priority

For today’s affluent individuals, high-value collections are not just investments; they represent a personal legacy. Almost half of the respondents plan to expand their collections of fine art, jewelries, and luxury cars in the coming year. However, protection against theft is a pressing concern for 81% of collectors, while 67% fear damages that might occur during travel. Alarmingly, about 30% of affluent collectors plan to self-insure their acquisitions, exposing them to substantial risk.

"Managing high-value collections requires a nuanced understanding of both financial and emotional value," explained Laura Doyle, Senior Vice President at Chubb. "Such items are often irreplaceable and require specialized protection to preserve family heritage."

Liability Risks Increasingly Troubling

Liability-related worries are also key in this report, with 92% of affluent households expressing anxiety over potential lawsuits impacting their wealth. However, only 28% maintain adequate excess liability insurance—a critical gap that could jeopardize their financial security.

Outlook for Wealth Creation

Interestingly, despite prevailing concerns, 63% of the survey participants recognize that opportunities for wealth creation have never been better, marking a more optimistic outlook than the previous year. Yet, a significant number (61%) do not label themselves as wealthy, even among those with considerable assets, indicating a complex and nuanced self-perception.

As affluent individuals navigate these complexities, the implications are clear: proactive measures must be taken to secure wealth against evolving threats. The Chubb Wealth Report emphasizes the necessity for tailored risk management strategies that account for both present and future uncertainties.

Methodology Behind the Report

The findings of the 2024 report stem from research conducted by Beresford Research, which surveyed 800 affluent North Americans between July and August 2024. This population primarily includes individuals with investable assets of at least $500,000, with many exceeding $5 million. The survey's margin of error stands at +/- 3.46%.

Conclusion

Chubb’s 2024 Wealth Report serves as a crucial guide for affluent households to reassess and fortify their asset management strategies against the backdrop of climate change, cybersecurity risks, and the safeguarding of valuable collectibles. By addressing these emerging risks head-on, wealthy individuals can ensure that their legacy is not only preserved but also enhanced in a rapidly shifting world.