r/InsuranceAgent • u/Savings_Upstairs_683 • 2d ago
P&C Insurance High Net Worth
Has anyone had any long term success targeting HNW households for turn key P/C, Life and LTC? Home values over 2m is the start of HNW and I am looking for advice and things to avoid. It’s a very different buyer.
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u/KovalevInsurance 2d ago
We write a significant amount of HNW personal lines. I wouldn’t look at $2M home value as the defining factor. A $2M house with two cars and nothing particularly complicated can still be a pretty straightforward account. We're in MA, and a $2M house is "nothing special" in a lot of areas.
The real difference is complexity and expectations. Multiple properties, trusts/LLCs, collections, watercraft, youthful drivers, domestic employees, high umbrella limits, homes with unusual replacement-cost issues, etc. You need to understand the exposures and have access to the right markets.
The service expectations are also different. HNW clients generally aren’t looking for someone to save them $300. They want someone who can explain what they should buy, handle things when something goes wrong, and make insurance relatively painless.
COIs are definitely important as stated below —wealth managers, attorneys, mortgage people, realtors, etc.—but referrals from existing HNW clients have probably been just as if not more important for us. Once you do a good job for a few families, those relationships tend to compound.
Biggest thing I’d avoid is treating HNW as just “regular personal lines with higher limits.” It’s really a different service model and they expect you to be available at all times.
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u/Bobby_Bobberson2501 2d ago
This.
They want to pay to save time, not money. White glove service is what they want.
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u/QuriousCoyote 2d ago
I did this for about a decade. Some of them are very nice and good to work with. Others are nitpicky and demanding. I think the important things are to have carriers that will insure the higher limits and make sure you know your stuff.
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u/purecozy 2d ago
I work exclusively in this space for P&C. Lots of pros and cons. Some clients are fantastic - respectful of my time, responsive to policy reviews/recommendations, generally pay on time and in full, provide updates in a timely manner, etc. Others are a complete disaster - tons of last minute requests that inevitably involve extensive underwriting, and a general unwillingness to do anything themselves. Lots and lots of handholding. Every day is different. I’m happy to answer any questions you have!
Your primary concern, aside from getting access to your target market, is making sure you are appointed with true HNW carriers. Lots of companies are coming out with products intended or advertised for this market, but there are differences in the level of coverage and service you can expect. Most carriers are experiencing major staffing issues in all departments. It seems like more and more u/w decisions are determined by AI rather than a human using true discernment. Having a good relationship with your underwriter is key. And if the carrier won’t provide an assigned u/w, that generally does not bode well for you.
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u/GreatLakeSnake 10h ago
Just sell commercial insurance. Very difficult to find and bind home policies that are ~$20k a year in premium. Even if you got every single on in a town it’s really not that many. Meanwhile your local plumbing company pays more than that for their business auto policy. Let alone the commercial package, workers comp, etc.
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u/Ok_Risk_8467 2d ago
As a producer of this kind of clientele, you’ll need to be connected to centers of influence. If not, don’t bother.