Following a couple of years of chaos in the Ultra-High-Net-Worth (“UHNW”) Personal Property & Casualty insurance market, we anticipate a bit less turbulence in 2025. Additional capacity is becoming available, and carriers are adapting by offering solutions in the non-admitted (Excess & Surplus lines) market. While pricing remains a challenge, we are starting to see glimpses of positive indications in this very sensitive area as well.
Despite the prevalence of flood-related disasters, flood insurance remains underutilized, due in part to FEMA’s limited flood zone mapping. Many areas impacted by flood occurrences in 2023 and 2024 have yet to be addressed by FEMA mapping, which sometimes presents an opportunity to secure more comprehensive coverage at a competitive rate.
Carriers are increasingly recognizing the value of loss-mitigation measures by offering enhanced incentives. By investing in protective devices and strategies, you would not only safeguard your assets and avoid irritating inconveniences, but you would also benefit from potentially significant premium savings. Some carriers now require the installation of Automatic Water Shut-Off devices before they will insure high value homes, along with an approximate 10% premium discount. Keep in mind that non-catastrophic water damage from broken pipes and leaky toilets represents almost half of UHNW insurers’ claims. If you have not seen our 8-page memo called Risk Mitigation Strategies please do so.
Our highly proactive approach — in a traditionally reactive industry — has produced a loss ratio approximately 25% better than the industry average. The result for our clients is more coverage for less premium as we find success in optimizing portfolios while leveraging our carrier relationships. Combined with our compulsive focus on service and the growth of our team, we now represent over 450 UHNW families in 45 States.
We thank you and your advisors for your continued confidence, and for your referrals. We wish you and yours a safe and prosperous 2025.