Is the mass market failing wealthy insureds?

Personal service is important when you're dealing with attractive and wealthy people. That's the mantra of specialist insurer Personal Risk Management Solutions (PRMS), and it seems to be working.

According to PRMS Chief Operating Officer and Partner Dale Krupowicz (pictured), the high net worth (HNW) and ultra high net worth (UHNW) insurance broker has a 99% win rate when it comes to new business. . The woman-founded and run business has met or exceeded its 25% growth goal every year since its launch in 2007. We've done this completely organically, with tough markets leading to business booms rather than busts.

Its roster includes Forbes honorees, prominent art collectors, entrepreneurs, and corporate executives. PRMS operates across 50 states and additionally manages international exposure.

“We have a whole range of customers,” Krupowitz said. IBA.

“It’s a completely different world” – Harsh impact on the market

In today's changing market, staying on top of customer needs has proven critical. Insurers are becoming more willing to invest, with some even pulling out of the region altogether as they seek to reduce claims amid inflation and severe weather pressures. Customers with properties in California, Florida, New York City, the Hamptons, Colorado, Louisiana and Texas are feeling the strain.

“We have to advise clients a little differently than we have in the past,” Krupovich said.

For some, this has meant a shift in mindset from seeing insurance as a way to pay in catastrophic situations rather than small claims. That might mean considering higher deductibles, higher limits, or, for ultra-high-net-worth clients, self-insurance. The role of the unauthorized market is increasing.

“Five years ago, if a client came to me wanting to insure a luxury condo, ski house or beach house, an insurance company would come knocking on the door trying to set up the business,” Krupovich said. “If the same client were to get me an offer now, it could be 50% to 100% more than what they would have paid back in 2019. It's a whole different world.”

Not all brokers fight for their customers

An insurance company may quickly turn down a customer with a history of losses when approached via email, but a “no turns into a yes” when a member of the PRMS team comes to bat for the insured over the phone. . All it takes to turn things around is for a knowledgeable insurance broker to explain what efforts the insured has made to reduce risk and why there are extenuating circumstances. only.

According to Krupovich, this could be “half the battle.”

PRMS consistently wins business from mass market brokers who are struggling to sustain client needs in a more challenging environment.

“We accept a tough market,” Krupovic said. “Friends of our customers are calling us because their insurance premiums are going up and no one is contacting them. [at their broker]”

Win with “high-touch” service”

Krupovich attributed his company's successful growth to its “high-touch service” and consistent advocacy for wealthy clients. Insured people don't just want to be insured. They also want consulting services.

“Recently, there was a study by Oliver Wyman that found that 70% of their customers don't review their insurance. That's surprising to me because our customers are moving companies, they're lifestyle is always changing,” Krupowitz said. IBA. “It’s up to us as brokers to make sure we know that, give them the right advice, and make sure all the assets they’ve worked hard to get are protected.”

High net worth and ultra high net worth clients – the advice and insurance gap

A study of wealthy individuals by Chubb Wyman and Oliver Wyman found that:

• 10% of wealthy people surveyed had not had their coverage expanded.
• 16% of wealthy households say they don't know the fair value of their property
• Seventy percent of wealthy families said they had never or rarely had a professional evaluation.

Travel and trends help PRMS stay on top of client needs

Market trends aside, PRMS staff spends a lot of time flying around and visiting insureds to ensure that companies are always meeting the latest needs. For Krupowitz, this may mean frequent travel to wealthy parts of states such as California, Chicago and Colorado.

“Seeing a customer's home is important to us, it's part of the personal touch and what we insure so we can advocate on behalf of the insurance company. It’s all about knowing,” Krupowitz said.

Traveling is a bonus, not a stress.

“I've always found this to be an interesting aspect of insurance,” Krupovich said. “I get to see clients’ beautiful homes and talk to some very interesting and intelligent people.”

It's also important to stay on top of modern trends. That might mean taking out personal cyber insurance or managing new types of valuables.

“You're seeing designer sneakers like Air Jordans costing thousands of dollars, and you're seeing Birkin bags and luxury watches,” Krupowitz said. “While clients may have previously thought about typical valuables such as art and paintings, it is becoming much more common for clients to consider insuring those items. .”

The rise in nuclear judgments and other high-profile judgments has led more customers to look at comprehensive insurance with higher limits.

“They're seeing in the newspapers and media about other types of lawsuits,” Krupovich said. “Recently, a client spoke to me about concerns that hiring a domestic helper could lead to sexual harassment or unfair dismissal. [claims], they are thinking about this further. ”

Focus on local talent

When PRMS launched 17 years ago, it began by courting experienced insurance veterans. Since then, the company has found a winning formula: focusing on homegrown talent.

“What we found is that teaching them our way is better because they don't have any preconceptions, they want to learn, they're young and enthusiastic.” Krupowitz said. “Many of our staff members are fresh out of college, and some of our current vice presidents started out as interns.”

Krupowitz himself started in the industry as a file clerk in an insurance office, then went to college and majored in marketing. After her graduation, she joined her cousin's insurance agency.

“He gave me the start and the rest is history,” Krupovic said. “I’ve always been on the broker side and continued to climb the ranks to be here now.”

How is it going for your high-net-worth and ultra-high-net-worth insurance customers? Share your experience in the comments section below.