Reassessing Risk Exposures With higher premiums come harder choices. Only 31% of high- net-worth families For many afÒuent families, risk management has become are willing to accept 31% greater financial risk to less a matter of how much premiums will cost and more lower their insurance an issue of how much financial risk they are willing and costs, a decrease from able to accept. Either by choice or due to lack of a better 39% in 2023. option, more families are assuming higher levels of exposure, a trend that is expected to continue. As severe weather events continue to push insured face a far more complex set of issues. That’s largely losses to record levels across North America, the cost of because the value of insurance goes well beyond claims coverage continues to rise. Carriers are steadily reducing settlements. Carriers who work with afÒuent families their exposure to the highest risk areas — some carriers typically provide services to improve resiliency, issue have exited catastrophe-prone areas altogether — warnings when major weather events are imminent and rendering some of the highest value homes in regions mobilize recovery vendors and contractors to repair more susceptible to wildfires and hurricanes all but damage. Those who self-insure would have to secure those uninsurable. Not surprisingly, 69% of the respondents services on their own. to the HUB International 2025 Outlook High-Net-Worth Survey1 reported that they have faced challenges securing As the trade-offs between the cost and level of coverage sufÏcient property insurance in the past year. The become more complex, it will be increasingly important solution for some is to redefine what they consider to be for afÒuent families to work with a qualified risk advisor to “sufÏcient.” determine the optimal balance. Most HNW families are already engaging in some level of self-insurance, typically by setting deductibles higher 1. HUB surveyed 200 high-net-worth individuals and their advisors on or dropping riders to reduce their premiums. The small issues relating to risk tolerance, property and investment insurance but growing number who are choosing to fully self-insure coverage. Case Study A HUB client who purchased a $1 million yacht had been declined coverage by several brokers, and the asset was uninsured. Working with a HUB Private Client Risk Advisor, the client was able to secure coverage through HUB’s expertise and strong carrier relationships. As a result, the client further engaged HUB to evaluate all of his personal insurance policies. 3