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INSURANCE


“There are four common insurance mistakes people make when seeking to protect their wealth”


Insurers have developed policies specifically


designed for individuals with significant assets to protect and who appreciate superior levels of cover and service. Prestige products offer broad cover, with high policy limits, reducing or removing the need to separately list valuable items. Many prestige products also offer a variety of


insurance benefits such as home appraisals to determine the replacement value of the property, automatic cover for newly purchased valuable items, and loss of market value following damage to artworks. Confidentiality and discretion in the treatment of


private information are also critical to building a trusted relationship between high net worth individuals and their insurance adviser.


Lacing in protection


The desire to diversify investments has resulted in wealthy individuals increase their spending on items of value and distinction such as jewelry, fine art and wine – and they plan to spend more on collections on the coming year. However, while the wealthy tend to treasure their investments, many often neglect to protect them through proper loss and prevention, according to a new survey commissioned by ACE Private Risk Services, which found up to 40 per cent of US collectors do not have all their collections insured.


The survey asked a panel of high-net worth individuals a broad range of questions to better understand what drives their passionate investing: what and why they collect and how well they protect items of significant value. Key findings include:  One in three of collectors in the survey insure their home and valuable collections with policies from mass-market insurance carriers, which often lack important coverage features to guard against temporary fluctuations in the market value of collections and breakage of fragile articles.


 As many as two out of five respondents have failed to utilize the resources of a risk consultant who can help make sure collections are stored and displayed in a location and manner where they are least likely to be damaged or stolen. Among respondents with a mass- market insurance policy, 70 per cent have failed to do so.


Prestige products offered by insurers are typically


more complex than a standard household policy. An experienced adviser can help their client to maximize the broad coverage available so that the insurance matches their lifestyle, rather than clients adopting routines to match the limits and conditions of insurance policies. Today’s high net worth clients also lead complex lives.


They look for advisers who are familiar with the risks that could undermine their plans and dreams, and who can manage these risks to protect future generations.


Risk management A responsible insurance broker such as Marsh will also offer risk management advice to its wealthy clients. It should begin with discussion with a new client or family office to fully understand their concerns, if any, about their existing personal insurance program. The adviser will review the efficiency of administrative procedures and the servicing model being delivered against what is desired, and offer alternative solutions, as well as utilizing the services offered by insurers such as home appraisals and security reviews.


For the full survey report, go to www.acegroup.com/us-en/ individuals-families/prs-white-papers.aspx


FAMILY OFFICE: ASIA TOMORROW 77


OPERATIONS


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