Sponsored Content: Nicola Holmes, head of broker art and private client underwriting at Hiscox, talks through the specialist insurer’s commitment to and developments in the HNW market
1. There have been a lot of underwriting exits from the HNW line, why do you think this is?
In comparison to other areas of insurance the high net worth (HNW) market has always been a marginal profit line.
The tough competitive market of recent years, alongside expense pressures such as increased claims costs, mean it has been harder than ever for insurers to take a longer-term view. Only those that have built robust trading teams with the knowledge and expertise to maintain underwriting discipline are likely to survive.
2. Will you remain committed to providing HNW insurance?
We are here to stay. Our vision is to be the market’s most trusted and preferred specialist insurer. These foundations are paramount to our success.
Our business has proven to be extremely resilient in recent years and brokers and customers alike value the importance of our longevity and brand strength. As we look forward to celebrating the 35th year of our 606 wording, we remain synonymous with art and private client insurance.
3. What improvements are you driving through for HNW brokers?
We are making lots of changes to the way we support our HNW brokers in the regions, making it easier to reach the experts by simplifying our structure and ensuring brokers have named contacts.
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We are also the only insurers to develop HNW cover on an eTrade basis through Acturis. It’s a full cycle, self-service platform that allows brokers to create quotes, bind new business, make midterm adjustments and generate renewals.We hope to be live in the coming months.
We are also using AI to speed up the submission and quote process with brokers. The pilot has been successful, so we are looking to roll out wider across all our specialist lines.
4. What is your appetite for new HNW business and how have you ensured you can accommodate this?
Our HNW underwriting team is focused on product sectors, which means we can keep on top of the latest developments in each sector.
Take motor, for example, where we have seen a sharp increase in the theft of premium cars, meaning we are now working closely with brokers and clients to recommend ways that clients can improve their own vehicle’s security.
We also continue to carry out extensive market insight into the HNW sector to understand how clients’ risk profile is changing and how we need to change as a business to continue meeting their needs.
HNW clients have more assets to protect. This includes coverage for things like large amounts of jewellery, fine art, renovations and multiple properties in the UK and overseas. We can put together almost 40 different combinations of wordings to suit the individual needs of our clients – in a way that other insurers cannot.
5. HNW is often called the concierge line – how important are broker relationships in this space?
It’s more critical than ever to have excellent relationships with broker partners, build trust and stay close to the evolving market.
We have a unique regional spread of underwriters and developers across the UK, ensuring we’re listening to brokers at a national and regional level and advancing our products and trading capabilities.
Our team of underwriters see brokers regularly to keep on top of any news or developments in the HNW market.
While it’s important for us to keep an eye on these developments internally, the most important thing is how they may affect our brokers and their client bases. We then work with brokers and clients to help them find the right solutions in what is an ever-changing market.
