#USA #Chicago #risk management #Hub International #high net worth

Overview of 2025 HUB High Net Worth Survey Insights

In its latest survey, Hub International Limited (HUB) sheds light on the changing risk landscape affecting high net worth families. As rising insurance premiums and a more complex risk environment pose challenges, affluent individuals are forced to reconsider their approach to risk management and insurance.

Rising Insurance Costs and Coverage Challenges

The 2025 HUB Outlook High Net Worth Survey indicates a significant concern among affluent families regarding the increasing cost and decreasing availability of traditional insurance coverage. Katherine Frattarola, HUB's Executive Vice President and Head of Private Client, notes that only 31% of high net worth families are willing to assume greater financial risks to lower their insurance costs, down from 39% in 2023. This reflects a growing hesitance to compromise on their protective measures amid rising complexities related to lifestyle security, theft, and technological vulnerabilities.

Key Insights from the Survey

The survey highlights that high-net-worth individuals are facing unprecedented challenges, particularly in securing insurance for valuable properties in areas susceptible to disasters. With insurance carriers becoming more reluctant to write policies in these high-risk regions, affluent families are exploring alternative options to mitigate their risks and lower expenses. Some critical recommendations from the survey include:

1. Engaging Younger Generations: Families are encouraged to involve younger members in discussions about risk management. Education on financial planning and risk awareness can help ensure long-term wealth preservation.
2. Investing in Mitigation Measures: Practical risk reduction strategies, such as wildfire-resistant landscaping and enhanced cybersecurity protocols, can protect assets more effectively.
3. Exploring Alternative Insurance Solutions: Options such as excess and surplus (ES) coverage or self-insurance can be considered with the guidance of a well-informed risk advisor. This could offer greater flexibility and protection than traditional policies.
4. Maintaining Broker Communication: Regular updates with insurance brokers regarding significant life changes or asset acquisitions can ensure adequate coverage is maintained in a rapidly evolving risk landscape.

Evolving Risk Factors Beyond Property

Affluent families must also pay closer attention to various other risk factors affecting their wealth. The rise of cybercrime, social inflation, and potential accidents involving collectibles calls for a rethink of traditional asset protection strategies.

The Role of HUB Private Client

HUB Private Client aims to proactively help affluent individuals navigate these complexities. Their consultative approach involves identifying unique risks and crafting tailored strategies to safeguard both personal and familial assets. This is crucial for helping clients prepare for an unpredictable future.

Conclusion

As the insurance landscape continues to evolve, affluent families must adapt their risk management strategies accordingly. By adopting a proactive stance, staying informed, and seeking guidance from specialists, high-net-worth individuals can better position themselves to protect their wealth and ensure stability for generations to come.

To find out more insights from the 2025 HUB High Net Worth Survey, consider reviewing their detailed reports available online.