An Advertorial Feature
A recent study by Zurich has revealed that over half of all respondents had witnessed a rise in gross written profit (GWP) over the past year, with a solid 23% confirming double digit growth. The study also detailed the safer ways to invest money and how quality high net worth (HNW) insurance now has a big part to play.
The number of people classed as high net worth individuals seriously dipped in 2008, according to the Zurich study but incremented steadily up to 448,000 by 2009. The research suggested that the main reason for this incline was the clever way in which wealthy people started investing their money and protecting themselves with high net worth insurance.
Gold prices soared in 2008 from £200,000 to £800,000 – indirectly encouraging the wealthy to invest in gold antiques and jewellery, as an alternative to risking their cash in recession hit banks. As a result, HNW insurance brokers received an increase in client numbers as these antiques were so valuable that it became absolutely necessary for owners to acquire adequate protection.
– Equally, the study outlined how stamps, wine and vintage cars also increased in value and explained how some individuals may already own items that have suddenly become high in value – these people can also benefit from HNW insurance.
Zurich’s research showed that HNW insurers witnessed the 23% rise in GWP but also mentioned how just 3% of respondents reported losses – all of which in single digits. There is no doubt that this investment activity from the rich has had a healthy effect on insurance brokers but only those who offer extensive HNW insurance in the first place.
HNW homeowners can cover their expensive contents with high value home insurance. Operating through a qualified insurance broker to acquire such insurance is the best way to guarantee adequate cover as they have the resources to tailor policies specifically to individuals.
Likewise, these homeowners can cover their actual buildings (even if listed) through the same insurance. Zurich discovered that the majority of high-value properties sustained or improved their value, with sales of homes in wealthier areas of London increasing by 57.5% from 2008 to 2010 – homes priced at £2m or more.
It all concludes that high net worth insurance is a growing market regardless of the economic crisis the world is experiencing. Plus, savvy high net worth individuals who invest in and regularly revalue certain assets, can relax in the knowledge their money is secured in the form of a valuable tangible item and protected further by quality HNW insurance.