PRMA’s Diane Delaney on High Net Worth Risk and Insurance Trends

As part of our expanded coverage of our 2026 Private Client Power Broker® winners and finalists, Risk & Insurance® recently spoke with Diane Delaney, executive director, Private Risk Management Association. PRMA is this year’s sponsor of the Power Broker Private Client category. What follows is a transcript of that discussion, edited for length and clarity.

Risk & Insurance: Thanks for meeting with us, Diane. Specific to high net worth, what risks should the industry be thinking about in 2026?

Diane Delaney: When we look at the last couple of years in the industry, the term risk management consistently rises to the forefront. It’s no surprise that for independent agents or brokers, this means having more meaningful discussions with clients on how to prepare for potential events.

Looking at 2026 and going forward, one of the things we have to examine as an industry—and what these power brokers are doing—is recognizing that effective risk management today is not about perfect protection. It’s about informed, intentional protection.

This is where the role of brokers becomes even more impactful. They are the ones positioned to bring informed and intentional dialogue in the discussions they’re having with clients.

While we talk a lot about risk management, it’s also important to acknowledge that today’s risks are multilayered. Many exposures extend beyond the home, especially in the high-net-worth space, and they are areas we are paying close attention to and will continue to explore as an industry.

R&I: Beyond property, what are some of the most underestimated exposures facing high net worth families today?

DD: Liability may be one of the more underestimated exposures facing clients today. Verdicts are higher, litigation is increasingly aggressive, and social inflation is shaping outcomes in multiple ways. High net-worth families are often in the crosshairs of these claims.

As an industry, alongside brokers, we must elevate how this exposure is addressed with clients. We should be challenging ourselves to ask what actions are being taken to reduce exposure, influence behavior, and position clients more effectively before they’re ever faced with a claim.The other major area is cyber. High-net-worth individuals are highly visible, digitally connected through smart home ecosystems, traveling frequently, and often supported by staff.

Engagement with clients has not always been as strong as it could be, in part because the products are consistently evolving. Our discussions need to be twofold: not just the products that could protect these families, but also the steps families should be taking to limit their exposure.

Much like we talk about risk management for homes, this requires more attention. It extends well beyond changing your passwords every couple of weeks. When you have multiple generations within a household digitally active, the question becomes how each individual is managing their own risk and contributing to the overall security position of the family.

At a broader level, supply chain disruptions are also impacting us, and they’re often out of our control. These pressures can influence rebuilding timelines and costs, which in turn affect premiums when homes must be repaired or reconstructed.

This highlights the importance of helping clients understand that premium impacts are rarely driven by a single isolated factor. Global developments can translate into very personal financial consequences, and recognizing those connections is an increasingly important part of risk awareness.

R&I: How does digital risk impact high net worth households, particularly when younger family members are active on social media?

DD: Digital risk is increasingly relevant for high-net-worth households because visibility begins much earlier than it did in prior generations. Younger family members are active online, sharing location, travel, lifestyle, and social information that can create exposure long before they are responsible for managing assets or insurance programs.

As an industry, we have often approached these issues reactively rather than proactively. This is an area where earlier engagement could make a meaningful difference because the exposure is behavioral and human driven. While wealth transfer and succession planning receive attention, risk knowledge does not always transfer alongside assets. Families may pass down significant portfolios, yet younger generations may not fully understand how their digital activity affects personal security, privacy, or long-term insurability.

This makes early education important. The goal is not simply to insure outcomes, but to help households think about digital habits, awareness, and accountability across generations. Each family’s exposure profile is different, and it extends beyond financial metrics.

Ultimately, this reinforces the continued importance of the broker’s role. Technology can support analysis, but guidance around lifestyle-driven exposure requires personal engagement, context, and trust. Helping families connect daily behavior with long-term risk positioning is an increasingly valuable part of that advisory relationship.

R&I: What traits distinguish an excellent or effective broker in this space?

DD: Today, if an insurance broker is only focused on products, then they are already behind. It’s about helping families stay insurable and making sure that at a time of claim, there are no surprises. It is preparation for a worst case scenario and guidance through decisions that shape long-term outcomes.

That is what it means to be a strategic risk advisor. Success in the role is defined by the ability to guide clients through complexity, evaluate tradeoffs, and translate market realities into practical choices.

Mitigation planning is another dimension that varies significantly by geography. Brokers working with clients who own multiple properties must shift perspective quickly, addressing wildfire considerations for homes in the western states while also discussing flood exposure for properties in coastal regions. The guidance cannot be one-size-fits-all, nor can it be delivered without sensitivity to practicality and client context. Recommendations must be thoughtful and realistic reflecting both lifestyle and generational differences with risk solutions.

Navigating the excess and surplus market has also become an important capability. Market conditions have evolved quickly, and clients do not always move at the same pace as those of us in the industry. Brokers who understand submission expectations, communicate effectively with wholesalers, and position risks clearly are better equipped to help clients get the outcome their policies are meant to deliver. Ultimately, these capabilities contribute to strengthening client resilience. Brokers who can interpret market dynamics, frame trade-offs clearly, and communicate in accessible terms are positioned to exceed those whose focus remains centered on product discussions.

R&I: How do different generations perceive cyber risk, and what vulnerabilities exist across age groups?

DD: Last year, we conducted research with 250 high net worth individuals, each with at least $5 million in investable assets and owning a home. One area we explored was whether generational attitudes toward risk differed.

The contrast was evident. About 15% of baby boomers said they have concerns about cyber risk and would be willing to consider protective solutions compared with nearly 60% of millennials. Millennials grew up in a digitally connected environment and tend to be more aware of potential threats, while older generations may perceive cyber exposure as unlikely to affect them personally.

Yet vulnerability manifests differently across age groups. Older individuals may be more susceptible to social engineering while younger individuals often face exposure tied to data sharing and online behavior. The risk profile is not necessarily higher for one group over another, but the pathways are distinct.

R&I: Why are wealth advisors often protective of their client relationships when it comes to working with insurance advisors?

DD: It often comes down to the time and trust required to build those relationships. Wealth advisors may spend years building credibility with clients before being given the responsibility for managing significant assets. Because of that investment, they are naturally protective of who they introduce to their clients.

I often share a story when teaching sales courses about a conversation I had with a wealth advisor managing extremely large portfolios. When I asked why he was selective about working with insurance advisors, his perspective was straightforward: he had spent years researching, educating, and building trust before ever earning the opportunity to advise those clients. That effort shaped how carefully he evaluated anyone else seeking access to the relationship.

From that viewpoint, an introduction is not casual. Wealth advisors want confidence that anyone brought into the relationship understands the client’s needs, reflects professionalism, and enhances the overall advisory experience. If an insurance broker approaches without preparation or with phrases like “let me help you help your clients,” it can come across as transactional rather than strategic, which creates hesitation.

Another dynamic is perception. Insurance is sometimes viewed as a necessary component rather than a wealth protection tool. When insurance advisors approach these relationships with patience, preparation, and alignment with high-net-worth individual’s broader goals, it helps position them as a natural extension of the wealth advisor’s planning process.

R&I: What is PRMA’s mission, and how is the organization supporting the private risk management industry?

DD: The Private Risk Management Association is a nonprofit organization that brings together insurance brokers, carriers, and service providers to strengthen how high-net-worth individuals are protected. Education sits at the core of that mission.

Supporting the industry begins with expanding what thought leadership looks like. It is not limited to insurance perspectives. Thought leadership means tapping into wealth advisors and trusts and estate planners and other adjacent professionals so members understand the broader conversations shaping client expectations.

We are expanding education across the board. We are addressing topics such as evolving household financial dynamics and market trends, and exploring AI-driven training tools to help advisors practice client conversations before calling prospects or clients.

Research is another pillar of support. Through surveys and benchmarking initiatives, PRMA gathers insight from high-net-worth households and participating agencies to better understand concerns, capability gaps and identify opportunities for improvement.

All of this is meant to help professionals get better at what they do, work more closely with related advisors, and continue adapting so they can meet the evolving needs of high-net-worth clients. &