However, if intermediaries continue to focus on their main strengths of providing personal and professional advice which meets the bespoke needs of their clients, they will continue to thrive in this area, the report said.
Defaqto’s High Net Worth Home Insurance Guide, also revealed significant growth in the number of providers and products in this market, underlining the opportunities that exist for intermediaries and providers alike. According to the report, 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 between 2008 and 2012.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
This market, which has traditionally been dominated by the intermediary sector, has witnessed the emergence of new challenges in recent years from banks and direct providers who are able to capitalize on their brand recognition and customer knowledge to target HNW individuals.
To meet this growing challenge, it is important for intermediaries to emphasize 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, the report suggests.
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."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
