The high value of the broker

The high net worth sector is made for the broking market as it is not just about finding the cheapest premium. It demands broker skills and expertise, personal contact, giving good advice and help with risk management. A HNW broker has to prove to a client that its acknowledged expertise in this niche area is paramount. The alternative of their client being tempted to go direct to even established insurers must rankle.

While all the research indicates that HNW clients are more sophisticated, more open to advice and less price conscious than other policyholders, it should be remembered that in the real world 'advice rather than price' is a concept that can change.

Clients also want to be reassured that the broker and underwriter understand their needs. Some HNW brokers have become very adept in getting this message across. Of course, making sure the client fully understands and appreciates the value of the broker's service requires a degree of subtlety and customer loyalty depends on contact. HNW gives the broker much valuable ammunition.

Contact does not have to wait until renewal, or for a claim. In HNW there are many tangible reasons for client contact outside the traditional windows. Underinsurance is an ongoing threat, to which the HNW policyholder is at great risk. Without proper advice, most HNW homeowners will make valuation errors on a potentially disastrous scale. Many affluent households visited are not properly insured and it is not unusual to find cases where buildings and contents are dangerously underinsured.

The need for good risk management advice can arise at any time, for example, during the onset of the flood warning season, or on home security issues.

Appraisal services, valuations and photographs of newly acquired contents help speed-up claims procedures. Getting the sums insured right at the beginning ensures peace of mind and reduces much of the client's worry if a claim occurs - for which the broker can take the credit.

Now is the time for brokers to seriously consider investing more resources and energy into the HNW market. The rewards are greater in terms of profit and satisfaction. If the groundwork has been done professionally, retention is more assured - and retention is as important as gaining the business in the first place.

HNW insurers truly value the professional broker - and, by valuing itself, it is in an ideal position to significantly increase its business.