High-net-worth insurance faces rising complexities and capacity limits
Wealthy Americans face reduced insurance options as carriers restrict coverage in high-risk areas and raise costs across all property types. Celia Santana, who leads Personal Risk Management Solutions, said 20 percent of affluent clients struggle to obtain policies, while 30 percent in vulnerable regions cannot secure protection. Traditional insurance models fail to address complex asset portfolios and global lifestyles that wealthy individuals maintain across multiple jurisdictions.
Insurers impose stricter underwriting standards after years of catastrophe losses reduced sector profitability. Santana advises clients to consult with advisors before purchasing properties or making renovations that could eliminate access to coverage. One Colorado client sold a residence with an old flammable roof and bought a new construction to meet carrier requirements.
Cyber threats affect 28 percent of high-net-worth individuals, while 67 percent worry about weather damage and 60 percent fear lawsuits. Nuclear verdicts and hostile juries increase liability exposure for wealthy defendants after the pandemic shifted public attitudes. Less than 30 percent of successful people complete professional insurance reviews, but 80 percent want financial advisors to manage their protection needs.
