Higher Premiums Drive Affluent Families to Redefine Risk Tolerance and Explore Alternative Insurance Solutions

CHICAGO, Dec. 3, 2024 /PRNewswire/ -- Hub International Limited (HUB), a leading global insurance brokerage and financial services firm, released its 2025 HUB Outlook High Net Worth Survey, offering insights into the evolving risk landscape for affluent individuals and families and outlining recommendations for proactive risk management strategies as traditional insurance coverage becomes more expensive and less accessible.

"Affluent families are facing a perfect storm of rising insurance costs, a shrinking availability of coverage and an increasingly complex risk environment," said Katherine Frattarola, HUB Executive Vice President, Head of HUB Private Client. "The evolving complexity includes vulnerabilities associated with lifestyle, safety and security, and they will play a greater role as we look towards the future. HUB Private Client works consultatively to identify these types of risks and to develop tailored plans so our clients, as well as their families and assets are well protected."

According to the 2025 HUB Outlook High Net Worth Survey, only 31% of high-net-worth families are willing to accept greater financial and mitigation risk protocols to lower their insurance costs, a decrease from 39% in 2023.

As affluent families are facing more challenges in securing adequate insurance coverage, particularly for high-value properties in catastrophe-prone areas, and as insurance carriers grow increasingly reluctant to underwrite policies in these regions, many affluent families will need to explore alternative solutions to reduce insurance premiums and actively participating in risk mitigation.

Beyond property, other areas that require closer consideration for affluent consumers include the collectables market, theft and accidents, cybercrime and social inflation. Key recommendations from the 2025 HUB Outlook High Net Worth Survey are:

• Educating the next generation: Engage younger family members in discussions about risk management and financial planning.
• Investing in risk mitigation measures: Implement practical measures to reduce risk, such as wildfire-resistant landscaping, water sensors, and enhanced cybersecurity.
• Considering unconventional insurance options: Explore alternative insurance solutions, such as excess and surplus (E&S) coverage or self-insurance, with the guidance of a knowledgeable risk advisor.
• Maintaining open communication with your broker: Regularly update your insurance broker about any significant life changes, property acquisitions, or evolving risk exposures to ensure adequate coverage.

By taking a proactive and informed approach to risk management, affluent families can better protect their assets, preserve their wealth and ensure a secure future for generations to come.

Read more insights on the 2025 HUB Outlook High Net Worth Survey here.

2025 HUB Outlook High Net Worth Survey Methodology
Conducted earlier this year, the HUB 2025 Outlook High Net Worth Survey polled 200 high-net-worth individuals and their advisors on the issues affecting affluent families and strategies to safeguard wealth. HUB also conducted the HUB 2025 Outlook Executive Survey, which surveyed 900 business leaders across corporate, risk, human resources and education/non-profit functions from companies in 11 sectors in the U.S. and Canada. Survey findings present insights into the risks that companies perceive in the present and future, their level of preparedness and the measures they plan to take to mitigate the identified risks.

About Hub International
Headquartered in Chicago, Illinois, Hub International Limited is a leading full-service global insurance broker and financial services firm providing risk management, insurance, employee benefits, retirement and wealth management products and services. With more than 18,000 employees in offices located throughout North America, Hub's vast network of specialists brings clarity to a changing world with tailored solutions and unrelenting advocacy, so clients are ready for tomorrow. For more information, visit Hub Media Center.

MEDIA CONTACTS:
Marni Gordon
Phone: 312-279-4601
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Jessica Wiltse
Phone: 312-596-7573
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SOURCE Hub International Limited