Blog Post
Specialty Insurance Coverage a Major Growth Area for Carriers
July 18, 2011 | Tom Kirkpatrick, President
Forrester Research analyst Ellen Carney recently published a report called “Courting the Affluent US Insurance Buyer Online” that leading insurance carriers should take note of. Carney introduces her report by outlining the market opportunity for carriers. Despite the lingering effects of the US economic recession, the affluent segment of the US population (defined in the report as households with at least $1 million in investible assets) is beginning to open up their wallets again for luxury goods and fine arts. Carney also cites a recent study from the Deloitte Center for Financial Services that projects the number of millionaire households in the US to double in the next decade, reaching 20.6 million affluent households by 2020.
This is a huge market opportunity for insurance carriers to broaden their repertoire of specialty products and services to meet the unique needs of affluent insureds. Specialty contents claims coverage is especially important for affluent households that typically possess luxury goods and collectibles such as high-end electronics, valuable jewelry, fine art and family heirlooms such as fine china and glassware collections. As Carney points out in her report, “wealth translates into demand for insurance specialists.” Affluent insureds also expect the highest levels of customer service that reach beyond simply assessing value and issuing a settlement check.
We’ve often pointed out on this blog and in many articles we’ve published about specialty contents claims, that contents specialists and expertise is not just for affluent insureds. Challenging, unique and valuable items frequently arise in all manner and types of residential and commercial insurance claims. For these reasons, and many others, now is the time for carriers to take stock of their current product and services offerings and determine next steps for introducing specialty products, especially in the area of contents claims. It’s not only a market opportunity that can’t be missed, but it’s also becoming an expected value-add from a growing segment of US consumers.
