High-net-worth individuals and families have worrying gaps in their financial security

High-net-worth individuals and families have worrying gaps in their financial security
New report shows lack of protection for possessions, data and reputation.
DEC 11, 2023

High-net-worth individuals and families across North America are leaving themselves at risk by not taking some simple steps to protect their possessions, personal information, and reputation, according to a new report from Hub International.

What makes the situation worse is that many of these affluent people believe they are adequately protected but have not updated their insurance policies and other protections to meet current and emerging risks.

The report from global insurance brokerage and financial services firm Hub International reveals that almost 90% of affluent individuals surveyed believe they have a program that adequately covers all aspects necessary to mitigate risk.

The reality is though, that just 16% have recently updated risk management procedures and only one in five of respondents are increasing limits or layering policies to reduce risk.

Also, given the exponential rise in the risk, fewer than one third believe they have adequately protected themselves from cyber threats, and more than half do not have a risk mitigation protocol for travel.

"Elevated interest rates, economic uncertainty and the rising frequency and severity of serious weather events are among many factors making it more challenging to preserve and safeguard wealth than ever before," Katherine Frattarola, Hub executive vice president and head of Hub Private Client, said in a statement. "The survey respondents identified that affluent individuals need to take a more all-encompassing approach to their risk management strategies and leveraging insurance to protect their homes and most-prized possessions, personal information and reputation, and preserve multi-generational wealth against future risks."

The report suggests that high-net-worth people should look beyond typical insurance coverage such as homeowners, auto, and umbrella liability policies, and consider a broader mix of options to protect their wealth now and for future generations.

Education is also important in terms of a multigenerational approach to wealth protection. This means that future generations should understand exposures and vulnerabilities and how the risks are being addressed.

Latest News

The hidden currency risk in global investing: what advisors need to know
The hidden currency risk in global investing: what advisors need to know

For those seeking international exposure amid economic uncertainty, understanding the impact of the US dollar's strength over other currencies is more important than ever.

CFP Board warns of tax "tipping point" as TCJA expiration puts financial plans at risk
CFP Board warns of tax "tipping point" as TCJA expiration puts financial plans at risk

With nearly nine in 10 seeing danger to clients' retirement income and legacy plans, among others, CFP professionals are urging strategic planning pivots and tax perks for advice-seekers.

Fed Day focus fades as Trump keeps stock markets watching
Fed Day focus fades as Trump keeps stock markets watching

As policymakers convene for their latest two-day meeting, investors are shifting their attention from elevated interest rates to growth concerns and tariff worries.

IRS eases off on some audits with retrenchments giving way to AI
IRS eases off on some audits with retrenchments giving way to AI

While he hasn't laid out a clear plan, Treasury Secretary Scott Bessent has gone on record touting "the great AI revolution" in improving the agency's tax collections and customer service.

More than three-quarters of advisors to embrace fee models by 2026, Cerulli says
More than three-quarters of advisors to embrace fee models by 2026, Cerulli says

Momentum continues for fee-based compensation as BD advisors ditch commissions and alternative compensation schemes emerge to lure diverse clientele.

SPONSORED Beyond the all-in-one: Why specialization is key in wealth tech

In an industry of broad solutions, firms like intelliflo prove 'you just need tools that play well together'

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies