Defaqto’s High Net Worth Home Insurance Guide reveals significant growth in the number of providers and products in this market, underlining the opportunities that exist for intermediaries and providers alike. Between 2008 and 2012 the HNW home insurance market has seen a 41% increase in the number of providers and a 28% increase in the number of products available.
However, whereas this market has traditionally been dominated by the intermediary sector, a clear challenge has emerged in recent years from banks and direct providers who are able to capitalise on their brand recognition and customer knowledge to target HNW individuals.
To meet this growing challenge, it is important for intermediaries to emphasise their unique selling points and become more aware of their competitors’ offerings – in particular, they should focus on the bespoke needs of HNW individuals to appropriately position features and benefits that meet the unique requirements of their clients.
Mike Powell, Defaqto’s Insight Analyst for General Insurance, said: "The dominance of intermediaries in the High Net Worth home insurance market is clearly being tested as more banks and direct providers enter the frame. In some respects, however, the entrance of banks and direct providers can be seen as good news for the intermediary sector as more competition provides opportunities for intermediaries to raise their profile.
"HNW home insurance is a truly bespoke product area and therefore needs professional advice. Differentiation in product cover is essential in determining which insurance product is purchased and intermediaries should use their knowledge of features and their availability to meet the needs of the client. Defaqto’s HNW Premier Star Ratings are a valuable tool that can be used in the recommendation process, and are available to the intermediary sector and are publically available for HNW customers to see."
Have your say on this story using the comment section below