Cover Image
Market Research Report

High Net Worth Home Insurance 2016

Published by GlobalData Product code 357795
Published Content info 51 Pages
Delivery time: 1-2 business days
Not Available
Back to Top
High Net Worth Home Insurance 2016
Published: May 13, 2016 Content info: 51 Pages

This publication has been discontinued on January 11, 2019.



Wealthy individuals require specialist mid net worth (MNW) and high net worth (HNW) insurance policies that offer wider coverage, higher limits, and better service compared to standard products. This is due to the higher value of their assets, which may include multiple homes, luxury cars, yachts, antiques, jewelry, wine, and fine art. Home insurance is generally provided on a global all-risk cover basis, often with an element of legal protection and travel insurance to which motor insurance can be additionally added. The market is forecast to grow as the number of affluents in the UK increases. Insurers are trying to grow the market by expanding their customer base by increasing consumer awareness of specialist products, better targeting their products through partnerships, reducing underinsurance, and adapting their distribution strategies to consumer purchasing preferences. Brokers remain the main distribution channel, although MNW individuals are moving away from them in favor of purchasing directly and via banks online. The market is soft due to insurer overcapacity, which has driven down rates and profitability, although premiums are beginning to stabilize. Competition is also provided by insurers offering enhanced standard policies. Hiscox and Chubb account for the largest share of GWP; meanwhile the rest of the market is characterized by a range of specialist and composite insurers. In the future, technology will play a greater role in the market by improving insurer-broker-customer relationships and managing household risk.

Key Findings

  • Hiscox and Chubb hold the largest share of the market.
  • The market is low in profitability with an estimated COR of just under 100%.
  • By 2020, the combined MNW and HNW market is forecast to be worth £1.3bn in GWP.
  • MNW business is moving away from the broker channel.


Verdict Financial's "High Net Worth Home Insurance 2016" report provides an in-depth study into specialist home insurance products for wealthy individuals. It begins by defining MNW and HNW individuals, followed by analysis of the historical growth in the number of these people and an estimate of market size. The report outlines what a typical MNW and HNW home insurance product includes and how they are distributed. Key issues associated with the industry are addressed in addition to highlighting key market players, their products, and latest developments. The report concludes with a five-year market forecast and explores how technology has the potential to shape the market in the future.

Reasons To Buy

  • Adapt your distribution strategy to ensure it still meets the needs of clients.
  • Ensure you successfully market your products and target potential clients.
  • Benchmark yourself against other players in the market.
  • Be prepared for how technology will impact the HNW home insurance market over the next few years.
Table of Contents
Product Code: VF00015IA

Table of Contents


  • The MNW and HNW home insurance market has potential to grow
  • Key findings
  • Critical success factors


  • Introduction
  • There is no standard definition of MNW and HNW individuals
    • Insurers define wealth differently to other financial services
    • Classifying MNW and HNW individuals is vital for product development and targeting
    • Home contents, rebuild cost, and premium price are used to classify home insurance
    • Client risks within the MNW and HNW space are diverse
    • Despite an incredibly diverse client market, products are undifferentiated
    • Some insurers believe client segmentation is the way forward for product targeting
  • The market for specialist household policies continues to grow
    • The MNW and HNW home insurance market is estimated to be worth £1bn in GWP
    • The number of affluents in the UK is growing
    • Not all wealthy households will have a specialist home insurance policy
  • The MNW and HNW home insurance market has potential to grow
    • Increasing the number of customers and premium price will grow the market
    • Identifying individuals in need of specialist home insurance is key to increasing penetration
    • Hiscox is the only insurer with a high-profile MNW home advertising campaign
    • Online channels could help identify customers who require specialist home insurance
    • Insurers are looking to develop partnerships to access HNW individuals
    • The market has softened due to overcapacity
    • Rates are beginning to stabilize but market profitability is still critically low
    • HNW individuals are loyal to their provider while MNW clients switch due to higher price sensitivity
    • Enhanced standard home insurance products are additional competition to the market
    • Underinsurance is a result of inadequate valuations and consumer attitudes to price


  • HNW individuals pay for service in addition to insurance
    • HNW clients' insurance needs are treated as a whole
    • HNW providers are renowned for their service of quality and excellence
    • HNW clients have access to professional networks and helplines, adding extra value
    • HNW providers battle claims before loss occurs to streamline their service
    • HNW clients look to brokers due to the greater complexity of their insurance needs
  • MNW home insurance is moving online
    • Fewer MNW home insurance policies are purchased through a broker
    • Online purchasing is becoming popular with MNW individuals
    • Insurers are beginning to offer their products directly online
    • Brokers should digitize their purchasing journey to remain relevant
    • Partnerships with banks and wealth managers will help access potential customers


  • Chubb and Hiscox hold the biggest share of the MNW and HNW market
    • Chubb and Hiscox remain the largest underwriters in the market
    • Hiscox Private Client provides HNW customers with a personalized service
    • Chubb offers three Masterpiece policies with varying levels of cover
    • The remainder of the market is characterized by smaller insurers
    • Numerous different regional and national brokers exist in this market
  • Insurers have moved into the HNW space through acquisition
    • Specialist insurers have been acquired for their HNW business and brand reputation
    • Covea acquired Sterling to expand its offering to HNW clients
    • ACE has rebranded as Chubb after acquiring the insurer
    • RSA acquired Oak Underwriting to strengthen its HNW insurance offering
    • Home and Legacy offers a range of product cover levels across its entire portfolio
    • Plum Underwriting expanded its HNW business through the acquisition of Synergy
  • Insurers with main offerings focused on standard policies also offer HNW cover
    • Composite insurers want to provide an all-round product and client offering
    • Aviva upgrades its HNW Distinct division with the launch of Aviva Private Clients
    • AXA's HNW home policy is provided through its specialist division for fine art cover
    • AIG has launched three new claims centers of excellence to increase efficiency
    • Zurich Private Clients offers insurance for HNW and UHNW individuals
    • Direct Line SELECT was launched for MNW customers in 2011
    • Ageas' House Guard Prestige policy offers home insurance for MNW clients
  • MGAs have been targeting the HNW market
    • New MGA Horizon looks to simplify and modernize product distribution
    • Hyperion now offers HNW insurance through merger with RK Harrison


  • The market will grow as affluence in the UK increases and rates harden
    • The MNW and HNW combined market is forecast to reach £1.3bn in GWP by 2020
    • The number of wealthy individuals in the UK will continue to grow
    • The number of specialist home insurance policies in force will increase
    • The market will grow as insurers raise premiums to improve profitability
    • Technology will be used to improve insurer-broker-customer relationships
    • MNW policies will be increasingly available to purchase directly online
    • The online channel will streamline product purchasing and claims settlement processes
    • Video and audio could be used to increase policy understanding
    • Digitally documenting high-value contents will help insurers manage client risks
  • Technology will play a future role in managing household risk and claims
    • Digital homes are becoming more popular
    • Installing water leak detection systems will reduce household claims and premium prices
    • Smart security will allow homes to be monitored even if they are unoccupied
    • Clients' personal data needs to be protected as crime moves online
    • 3D printing will repair or create replicas of lost or damaged contents


  • Abbreviations and acronyms
  • Definitions
    • Brokers
    • COR
    • Composite insurer
    • HNW
    • Liquid assets (or liquid wealth)
    • London insurance market
    • MGA
    • MNW (or mass affluent)
    • Onshore
  • Methodology
    • Primary sources
    • Secondary sources
  • Bibliography
  • Further reading
  • About Verdict Financial
  • Disclaimer

List of Tables

  • Table 1: Ways of categorizing MNW and HNW individuals
  • Table 2: Size of the UK MNW and HNW home insurance market in GWP (£m), 2010-15
  • Table 3: Number of UK affluents defined by onshore liquid wealth (000s), 2010-15
  • Table 4: Estimated number of MNW and HNW household policies (000s), 2010-15
  • Table 5: UK MNW and HNW home insurance market forecast in GWP (£m), 2015e-20f
  • Table 6: Forecast for the number of UK affluents (millions), 2015-20f
  • Table 7: Forecasted number of MNW and HNW household policies (000s), 2015-20f

List of Figures

  • Figure 1: The MNW and HNW home insurance market is growing
  • Figure 2: The number of UK affluents increased to 13.1 million in 2015
  • Figure 3: The number of MNW and HNW household policies is increasing
  • Figure 4: Hiscox's advertising campaigns target MNW individuals
  • Figure 5: HNW insurers were ranked highly for providing the best broker service
  • Figure 6: The new Chubb logo is designed to represent the quality, service excellence, and diversity of the brand
  • Figure 7: The MNW and HNW home insurance market will continue to grow
  • Figure 8: The number of UK affluents is forecast to reach 16 million in 2020
  • Figure 9: The number of MNW and HNW household policies will increase
Back to Top