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INSURANCE Insurance pitfalls


Wealthy people typically live busy lives as they juggle professional and personal commitments. They rely on their insurance broker to proactively manage their insurance arrangements, removing the administrative burden where possible, to ensure they can focus on the key insurance areas necessary to protect their assets.


T


hrough its national private client services practice, the insurance broker and risk adviser Marsh offers specialized risk and insurance solutions for individuals and families with


substantial assets wanting to protect their homes, fine arts, jewelry and collectibles. As a global company, Marsh can provide benefits to clients through its international capabilities and contacts, ensuring that clients have access to the solutions that best fit their needs. Marsh’s clients include some of Australia’s most


affluent individuals and families, many of whom have entrusted them with managing their personal risk and insurance arrangements for several decades. Confidentiality and discretion are paramount to wealthy people. Marsh protects clients’ information through private fax and mailbox facilities. Marsh says there are four common insurance


mistakes people make when seeking to protect their wealth.


Not regularly reviewing arrangements Insurance programs should be reviewed annually to ensure they are still aligned to recent purchases and lifestyle changes. Depending on the size and complexity of the program, Marsh encourages annual reviews (six-monthly for active collectors). Recent or planned


76 FAMILY OFFICE: ASIA TOMORROW


for the wealthy Prestige products can be tailored to their needs


purchases, along with trends in the personal insurance market, should be considered.


Believing all insurance products are the same Home insurance policies vary significantly in the cover they provide, their conditions and exclusions, and their policy limits. Some policies require the client to purchase cover extensions that come as standard covers in broader policies. Reviewing insurance arrangements with an


insurance broker assures that the product suits the client’s requirements. The client also learns how to structure their insurance program to maximize the automatic coverage the policy provides.


Not obtaining updated valuations on fine arts and jewelry Many clients disclose the purchase price of a piece of art or jewelry, with cover then arranged accordingly. If values are not reviewed regularly, there may not be sufficient cover in the event of a loss. Obtaining updated valuations (insurers recommend every three to five years) minimizes this risk.


Not providing updated security information Insurance premiums are generally calculated on several factors, including the property’s fire and burglary protection. The client should always notify their insurance adviser if security arrangements are updated, as the addition of a monitored alarm system, monitored smoke detectors and the like may result in a premium reduction.


Insurance tailored to the wealthy Many people have worked hard to build assets and grow their wealth so they can enjoy the opportunities life has to offer. However, financial success can bring with it a new array of risks to assets, family and lifestyle.


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