The number of wealthy individuals in the UK (assets of more than £750,000) has risen year-on-year for the past six years, now accounting for about one-fifth of the population.
Around 80 per cent of them, however, do not use a high-net-worth specialist insurer or broker. With the number of millionaires set to rise to 826,000 by 2020, this is a significant market that brokers can ill afford to ignore.
These individuals have high expectations of service, are cash rich and time poor and, as a result, truly value professional advice. So how can you tap into this market?
Many advisers already have a healthy HNW client list without realising it. Think about clients who have commercial mortgage needs and those who run their own business. There are also a lot of mid-net-worth individuals who may enter HNW territory. Two flags to watch out for are inheritances and more general changes in buying patterns. For example, an increase in valuable items covered on their home contents insurance or the purchase of an expensive car can present an opportunity to discuss their changing requirements.
Breaking into the HNW market is not hard and the rewards are great. You will need to always give excellent service and quality cover, and align yourself with respected, specialist insurance brands.