Those who advise financially successful families understand the most cost efficient use of insurance is to transfer large risks that can present a significant financial loss, while self-insuring smaller risks that can be avoided or absorbed. Remarkably, however, many financially successful families do not understand they are taking the opposite approach by renewing insurance policies that feature protection from modest losses, often at inflated costs.
ACE Private Risk Services surveyed 600 independent agents and brokers, and has documented the ways in which affluent consumers commonly over-insure against minor threats and under-insure against major ones. The survey also identifies often overlooked opportunities to improve the cost efficiency of their insurance program. The results are eye-opening and worth sharing with those you care about.
This link to ACE’s website will direct you to the first of a 3 part video series that summarizes the key findings. Each video installment is only about 3 minutes, and all are worth reviewing. Consider sharing this information with your clients, as at least a few may benefit from examining if they may be overpaying to be under insured.
ACE has also published a white paper to document their findings on this topic. Contact me if you would like to provide your clients with a hard copy of this white paper.