Newsletters
Risk Central
Digital EditionHigh-Net-Worth Clients Face Growing Gaps Between Insurance Concerns and Coverage, Survey Finds
A disconnect exists between the risks that high-net-worth clients fear most and the coverage they actually have in place, according to the Private Risk Management Association’s 2025 Private Client Insurance Insights Survey of 250 affluent homeowners.
Today’s wealthy individuals face a complex web of interconnected threats that extend far beyond traditional property concerns, according to the PRMA report. While broad economic factors like market volatility and political instability dominate headlines, HNW clients are equally preoccupied with personal dangers: cyberattacks, extreme weather and litigation.
The survey data highlights this broader concern about risk: Roughly nine in 10 HNW clients identify market volatility and political change as major financial risks, yet the same percentage express concern about cyberattacks. Two-thirds worry about extreme weather, and more than half fear the financial consequences of being sued.
Age significantly shapes these risk priorities, the report said. Millennial HNW clients demonstrate substantially higher concern about litigation exposure, with 83% viewing lawsuits as a meaningful risk compared to just 32% of Baby Boomers. Similarly, younger affluent households show greater appetite for cyber insurance protection at 54%, nearly triple the 15% adoption rate among Boomers. This generational divide reflects the different ways various age cohorts view their exposure to digital and legal threats.
The Service Delivery Gaps Creating Opportunities
Despite high confidence in their coverage, HNW clients simultaneously harbor significant doubts, according to the survey. Ninety-five percent express confidence in their overall insurance, yet 65% worry about policy exclusions. This paradox represents a critical vulnerability in the current advisor-client relationship, PRMA said.
The hard insurance market has intensified these anxieties. One in five HNW clients struggled to obtain homeowner’s insurance in recent years, a figure that climbs to one in three in high-risk states such as California, Florida, Texas and Louisiana. When clients do experience weather damage—which 26% have endured in the past five years—80% report the loss as moderate to major. Yet many remain uncertain whether their policies adequately address peril-specific risks like flooding and earthquakes, the report said.
The claims experience reveals inconsistencies that erode trust. While overall claims satisfaction stands at 87%, clients working with multiple carriers experience the most friction, with 40% reporting dissatisfaction with claim speed and 27% unhappy with reimbursement levels. Even clients of HNW-specialist insurers, though reporting 93% overall satisfaction, express concentration of dissatisfaction around settlement speed and reimbursement amounts, according to the report.
Geographic location amplifies coverage concerns. Clients in high-risk states are significantly more anxious about coverage exclusions—75% versus 60% in other states—and are taking proactive mitigation steps. In states at high risk for extreme weather, 45% have installed fire-resistant materials (compared to 31% in other states), and 48% have upgraded roofing for wind resistance (vs. 35% elsewhere), the report said.
Litigation concerns prove consistent nationwide at roughly 60%, suggesting that excess liability protection should be a priority conversation for agents across all regions, not just traditionally litigious states.
Redefining the Agent’s Role for Modern Wealth
These findings fundamentally reshape how insurance professionals must position themselves to serve HNW clients. The traditional transactional model of policy placement no longer suffices, according to PRMA. Instead, agents must evolve into comprehensive risk partners who understand that 63% of HNW clients already consult with other professionals—wealth advisors, financial planners, CPAs and attorneys—when evaluating insurance needs.
Cyber risk exemplifies this evolution. While 28% of HNW clients have been a victim of a cyber event in the past five years, with identity theft and financial fraud being most common, many remain underprepared despite growing awareness. The survey found that 58% have taken steps to manage ther cyber risks but would like to do more.
Agents who conduct thorough cyber risk assessments and position such coverage alongside property and liability policies can differentiate themselves significantly, particularly among Millennial clients, the report said.
Similarly, collections protection requires a legacies-first approach. Sixty-nine percent of HNW clients own valuable collections such as jewelry, art and classic cars, with 57% planning to transfer these assets to heirs. Yet many lack specialized coverage guidance, the report noted. Agents who initiate conversations framed around legacy preservation rather than financial value can unlock opportunities that generalist advisors overlook.
Learn more about the research here. &
